Dec 8, 2009

BUMI-Recapital & Berau deal scheme


PT Bumi Resources Tbk (BUMI) Tbk, PT Recapital Advisors, PT Berau Coal's subsidiary, and Rizal Risjad are now striving to seek debts to close acquisition deal of 90% shares in Berau worth nearly US$1.5 billion (US$1.48 billion).
Berau Coal's deal is fully funded by combination of debts. The first source of debt coming from BUMI, the largest coal producer under Bakrie Group. BUMI has channeled subordinated loan of US$300 million to PT Bukit Mutiara, which is 99.6% controlled by Recapital to acquire Berau. BUMI just sold convertible bonds of US$300 million at the end of last month, bearing an annual interest rate of 5% and will due in the next 7 years.
Following BUMI's subordinated loan, Recapital has designated Credit Suisse, the darling creditor and investment bank for Bakrie Group, to arrange another debt facilities of US$600 million.
US$300 million of debt, so-called OpCo facility, will be sought by Empire Capital Resources Ptd Ltd, a wholy owned company of Berau Coal. The loan faciliy has been set to prop up early redemption plan of Berau's US$ dominated bonds. Berau has held a kicked off meeting with bond holders providing a buyback price of 104.68%.
The remaining facility arranged by Credit Suisse, dubbed HoldCo facility of US$300 million, will be expanded to Bukit Mutiara to finance shares purchase of 90% interest in Berau worth US$1.18 billion. Along with the HoldCo facility drawdown, a source familiar to the matter said, the purchase consideration will be bankrolled by BUMI's subordinated loan and payment notes of US$580 million sold to vendor which is Berau's share holders as well.     
Bukit Mutiara, Recapital's special purpose vehicle, will buy 100% shares in PT Risco which steers 90% of Berau Coal via PT Armadian (51%) and Rognar BV (Netherlands) (39%). Risco retains control Rognar BV indirectly via Winchester (Seychelles) (100%) and Aries (Malta) (100%), while Aries  owns 87.2% of Rognar BV.
Adding to that, Bukit Mutiara is planning to buy 100% shares in Regulus International (SG) and Maple (Labuan) which will set up a marketing agreement with Berau Coal.
In June 2009, Berau booked net sales of US$377 million and posted EBITDA of US$156.3 million. Berau's total debt outstanding was US$287.5 million at the same period, while cash and cash equivalent of US$156 million.

Here is structure of OpCo facility (US$300 million):
Borrower: Empire Capital
Guarantor: Berau Coal
Use of proceeds: Early redemption of Berau's bonds due 2011
Utilization date: December 28 2009
Maturity: 12 months after utilization date
Interest: 3 months US$ Libor + margin
Margin: 4.75% annualy for the first 2 quarterly payment, increasing by 1.50% per year
Security: All assets and receivables of both creditor and guarantor

Here is structure of HoldCo facility (US$300 million):
Borrower: Bukit Mutiara
Use of proceeds: partial payment of Berau purchase
Utilization date: December 28 2009
Maturity: 12 months after utilization date
Interest: 3 months US$Libor + margin
Margin: 8% per year for the first quarterly payment, increasing by 1.50% per year
Security: Shares in 90% of Berau Coal

2 comments:

Kalong78 said...

Saya dengar bumi nantinya yang jualin coalnya berau, tapi yang jadi kontraktornya Sapta Indra(Adaro).

Insider Stories said...

Pak Kalong,,,saya dengar juga begitu. Jadi schemenya, Bumi kasi loan US$300 juta ke Bukit Mutiara, anak usaha Recapital. Nah, Bukit Mutiara nanti membeli Regulus dan Maple (labuan) yang nantinya membuat marketing agreement dengan Berau.
Kalau nggak salah kontraktor Berau terbesar adalah Bukit Makmur (anak usaha Doid).