Viva Moves to Pay Down $46m Loan Ahead of Schedule

Visi Media Asia, a free-to-air broadcaster and news website operator, plans to speed up its payment of a Rp 442.3 billion ($46 million) syndicated loan led by Credit Suisse’s Singapore branch office.

Erick Thohir, president director of the company better known as Viva, said funding for the debt refinancing scheme would come in part from an $80 million syndicated loan coordinated by Deutsche Bank AG in Singapore.

“The remaining funds [from Deutsche Bank] will be used to finance broadcasting rights [in Indonesia] for the 2014 World Cup,” said Erick, one of the founders of Mahaka Group, which owns a number of publications in Indonesia.

He expected the refinancing scheme to lower the company’s interest burden and positively affect Viva’s financial condition. Erick said the Deutsche Bank loan would also cover the penalty fee assessed for paying down its Credit Suisse debt earlier than scheduled.

Viva has spent $61.54 million for the exclusive rights to air the 2014 World Cup in Brazil. Neil Tobing, the company’s corporate secretary, previously told Investor Daily that Inter Sports Marketing, as the broadcast license holder for the World Cup in Indonesia, had signed a licensing agreement with Viva’s three subsidiaries, Cakrawala Andalas Televisi (ANTV), Lativi Mediakarya (tvOne) and Digital Media Asia.

In Viva’s first half financial report, the total debt to Credit Suisse amounted to Rp 442.3 billion.

The Bakrie Group owns Viva, which is the holding company for television broadcasters ANTV, tvOne and online newsportal Vivanews.com.

In the first half of 2012, the company’s net income rose 4 percent to Rp 17.27 billion. Meanwhile, revenue increased 17.6 percent to Rp 545.88 billion.

Viva sold 1.67 billion shares at Rp 300 each, generating Rp 500 billion in proceeds at an initial public offering in November 2011.

Viva’s industry competition includes listed companies Media Nusantara Citra and Elang Mahkota Teknologi.

MNC, controlled by media tycoon Hary Tanoesoedibjo, owns free-to-air broadcasters Rajawali Citra Televisi Indonesia, MNC TV and Global TV. Elang Mahkota group runs TV broadcaster Surya Citra Televisi (SCTV) and Indosiar.

News broadcasting service tvOne also competes with non-listed Media Televisi Indonesia, which is owned by businessman and politician Surya Paloh and operates local broadcaster Metro TV.

Investor Daily