Merdeka Copper Gold (MDKA) has strengthened the capital of its subsidiary, Pani Bersama Jaya (PBJ), by increasing PBJ's facilities by an additional USD 135 million. With this addition, the total financing amount now stands at USD 260 million, up from the initial USD 125 million.
The loan will be utilized by PBJ not only for general corporate purposes but also for capital expenditures, operational needs, and working capital. The loan is subject to a Secured Overnight Financing Rate (SOFR) of 3 months plus a margin of 5.76%.
The loan's maturity is set for the 5th year following the initial agreement date. The maturity date is on the 5th business day after the full repayment or settlement of all outstanding amounts under the senior facility agreement.
Following this transaction, the company can provide financial support to PBJ. The funds will be utilized by PBJ for various purposes, including general corporate needs, capital expenditures, operations, and working capital.
This transaction was carried out with an affiliate due to its efficiency, as Merdeka Gold is the parent company of PBJ. The loan is expected to have a positive impact on the company, ultimately adding value to its shareholders.
