Malaysia's Kumpulan Guthrie plans new $380 million seven-year term loan

By Reshmi Basu

New York, June 15 - Kumpulan Guthrie Bhd. announced it plans to refinance its existing dollar-denominated loan with a new $380 million seven-year term loan facility.

The refinancing allows the company to take advantage of the strong liquidity in the offshore debt market, Guthrie said in a statement.

"Despite the unsecured structure and the seven-years maturity profile, the competitive interest margin of 0.55% above Libor is significantly lesser that the pricing on its current loan," the company said. Thus, the company said it would benefit from the interest cost saving due to the differential between existing loans and the new loan.

The Kuala Lumpur-based plantation company has mandated DBS Bank Bhd. and Hongkong and Shanghai Banking Corp. Ltd. as the lead arrangers and underwriters for the facility.

Guthrie said the refinancing would not have any impact on its gearing position.

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