JAKARTA (Yosefardi) – PT Matahari Department Store Tbk (LPPF) has recently signed a new facilities agreement with a banking group comprising of PT Bank BNP Paribas Indonesia and PT Bank CIMB Niaga Tbk.
The facilities comprise a Rp1.65 trillion and Rp230 billion revolving credit facility, or total Rp1.88 trillion.
The new facilities will be primarily used to repay existing indebtedness, with flexibility for LPPF to use the remaining amounts to fund working capital and capex.
This allows LPPF to lower its interest expenses (4.75% margin over JIBOR to 3%) and commitment fees (1% to 0.75%), while improving LPPF’s flexibility through the removal of excess cash sweep and other manatory prepayments.
Matahari has 125 stores in operation located in 61 cities across Indonesia.