TANJUNG OFFSHORE BERHAD

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2009
20. LONG TERM BORROWINGS (continued)
Note i - Term Financing - i
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TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
The purpose of this term loan is to fi nance the construction of one (1) unit Anchor Handling Tug Supply Vessel (AHTS) or known
as MV Tanjung Dawai for total consideration of RM45,750,000. The loan is repayable within eight (8) years with the profi t rate
of 3.00% per annum.
Note ii - Bai Istisna’ (BIS 1)
The purpose of this term loan is to fi nance the construction cost of one (1) new unit of 60-M Anchor Handling Tug Supply Vessel
or known as MV Tanjung Sari. The loan is repayable by 114 monthly installments with the profi t rate of 4.75% per annum.
Note iii - Bai Istisna’ (BIS 2)
The purpose of this term loan is to fi nance the construction cost of one (1) new unit of 60-M Anchor Handling Tug Supply Vessel
or known as MV Tanjung Puteri 1. The loan is repayable by 114 monthly installments with the profi t rate of 4.75% per annum.
Note iv - Bai Istisna’ (BIS 3)
The term loan which consist two (2) funds are to fi nance the construction costs of one (1) new unit of 60-M Anchor Handling
Tug Supply Vessel or known as MV Tanjung Puteri 2. The loan is repayable by 114 monthly installments with profi t rate of 4.75%
and 7.75% per annum respectively.
All the facilities mentioned in Note i to iv are secured by the respective vessels under fi nancing, corporate guarantees of the
Company, assignment of shipbuilding contracts and future earnings of the respective vessels.
Note v – Term Loan
The term loan is to fi nance the property held under PN 4125, Lot No. 3801, Mukim Teluk Kalong, District of Kemaman,
Terengganu Darul Iman.
The term loan interest rate for the fi rst 12 months is 3.28% per annum and repayable within ten (10) years. The said facility is
secured by letter of undertaking, notice of assignment, fi xed deposit and corporate guarantee from the Company.
Note vi - IMTN
On 12 December 2007, the Company has announced its proposed issue of, offer for subscription or purchase of, or invitation
to subscribe for or purchase of up to RM400,000,000 nominal value IMTN. On 16 June 2009, the Company obtained the
consent from its bondholders to reduce the existing IMTN Programme from RM400.0 million to RM200.0 million. As at to date,
the Company has issued RM120,028,833 of IMTN.
The IMTN shall be utilised by the Company’s to fi nance the acquisition and/or construction of offshore support vessels,
production platforms, lift barges and oil rigs.
The IMTN has tenure of up to fi fteen (15) years from the date of the fi rst issuance of the IMTN. Notwithstanding the tenure of the
IMTN, the Company may only request for issuances of the IMTN within the period commencing from the date of the fi nancial
close of the IMTN until the 5th anniversary from the date of the fi rst issuance of the IMTN.
The repayment of IMTN with profi t rate is payable semi annually in arrears with the fi rst profi t payment commencing six (6)
months from the issue date of the respective IMTN and with the last profi t payment of the respective IMTN to be made on the
respective maturity date.