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Business Times (Malaysia): Shell unit to prepay outstanding balance of RM1.4b loans

Business Times (Malaysia): Shell unit to prepay outstanding balance of RM1.4b loans 

May 13 2005

SHELL Refining Co Bhd (SRC) said it will use a RM532 million syndicated term loan arranged by Bank of Tokyo-Mitsubishi to prepay outstanding balance of an existing loans of RM1.4 billion.

SRC signed the loan agreement with Bank of Tokyo-Mitsubishi in Kuala Lumpur yesterday.

Shell Malaysia chairman Datuk Jon Chadwick said the new term loan will enable the company take advantage of much more competitive financing rates as well as to improve its capital structure.

“This new term loan facility, which brings materially reduced financing costs and increased profitability to SRC and its shareholders, is testimony to our resolve and focus in achieving an optimal capital and financing structure for the company,” he told newsmen after the signing of the agreement.

At the signing yesterday, SRC was represented by Chadwick and managing director Raja Ahmad Murad Raja Bahrin, while Bank of Tokyo-Mitsubishi general manager (Labuan branch) Wataru Tanaka signed in the presence of Bank of Tokyo-Mitsubishi Malaysia president and chief executive officer Hiroyuki Kudo.

Chadwick said SRC is pleased with the terms offered by the Bank of Tokyo-Mitsubishi, which include competitive pricing while the other terms and conditions remain unchanged.

In a statement later, SRC said the loan facility is available for drawdown in one lump sum within 90 days from the facility agreement date and has a final maturity of five years from the drawdown date.

Repayment of the facility will be made in one lump sum or “single bullet” on the final maturity date.

Chadwick said SRC’s existing loans will mature in June and September next year.

It will be reporting its first quarter 2005 results and hold its annual shareholders’ meeting on May 18.

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