JAKARTA. PT MD Entertainment Tbk (FILM), a film production company, has reportedly signed a loan agreement with PT Bank Mandiri (Persero) Tbk (BMRI) with total principal worth IDR 794.75 billion.
The facility consists of 2 terms, Tranche 1 of IDR 529.5 billion, and Tranche 2 of IDR 265.25 billion. The tenor set for FILM by BMRI is 61 months since the agreement signing, with the interest rate set to 9.25% per annum.
The management of FILM said that the the loan aims to bridge cash flow gap following the most recent corporate action, the acquisition of PT Net Visi Media Tbk (NETV). In the future, NETV is expected to possess greater production capability post-acquisition.
Therefore, this transaction will benefit both parties: the company and NETV, said the management of FILM in the official statement.
As a part of loan agreement, FILM is submitting several guarantees, including the pledge of 80% of NETV, a landbank owned by the company and its subsidiary, as well as deposit. (KR/ZH)