Feb 18, 2011

Delta Dunia considers debt refinancing

PT Delta Dunia Makmur Tbk (DOID), parent of Indonesian second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), is considering to secondly refinance US$600 million of syndicated bank loan facility which was just secured by BUMA. 
Several sources familiar with the matter said Northstar Pacific Partners, as controlling share holder with 40% stake in Delta Dunia, seems unhappy with the current structure of syndicated loan. Indirectly, Northstar Pacific, now based in British Virgin Island company, is controlled three stellar shareholders, Texas Pacific Group, Government of Singapore's Investment Corporation, and Chinese sovereign wealth fund China Investment Corporation (CIC).  
"Considering gloomy situation, refinancing is more likely possible than rights issue. For sure, rights issue is inevitable for Delta Dunia as it requires to enlarge equity, enabling the company to secure more loans for business expansion," the sources said.

Disclosure: No position at the stock mentioned above. 

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