About 10 Banks joining group of lenders have committed to provide US$600 million loan facilities to PT Bukit Makmur Mandiri Utama (BUMA), Indonesia's second largest coal mining contractor and wholly owned by PT Delta Dunia Makmur Tbk (DOID).
In a formal statement to Indonesia Stock Exchange (IDX) today. the lenders are The Bank of Tokyo-Mitsubishi UFJ Ltd, Singapore Branch, The Bank of Tokyo-Mitsubishi UFJ Ltd, Jakarta Branch, ING Bank N.V., Sumitomo Mitsui Banking Corporation, Intesa Sanpaolo S.p.A, Hong Kong Branch, Morgan Stanley Bank International Limited, Barclays Capital, Bank Mandiri, Indonesia Exim Bank, Bank CIMB Niaga.
The new facility, which was signed on November 29 2010, is a 5 year term loan facility and will pay lenders a margin of LIBOR + 4.75% to withholding tax lenders and LIBOR + 4.90% to withholding tax neutral lenders.
The use of proceeds of the facility is to fund the tender offer for and tax call of the outstanding notes, as well as the prepayment of the existing credit facility.
Prime Dig, wholly owned subsidiary of BUMA, expects to carry out a tax call. Pursuant to the tax call, Prime Dig also expects that the noteholders who do not tender their notes in the tender offer will have their notes redeemed at 100% of the principal ammount of the notes plus accrued and unpaid interest following the settlement date.
Disclosure: No position at the stock mentioned above.
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