Mar 9, 2011

Berau to buyback US$350 mio notes

Berau Capital Resources, Indonesia's fifth largest coal producer PT Berau Coal Energy Tbk (BRAU), has announced an offer to repurchase of US$350 million guaranteed senior secured notes issued by Berau Capital on July 8 2010.
In an official statement submitted to Indonesia Stock Exchange (IDX) dated on March 8 2011, John Ramos, BRAU's Director and also Chief Financial Offer, said the notes buyback will be arranged by HSBC. Regarding to the offer, notes holder have 30 days to respond.
Referring to Vallar Plc prospectus, Berau Capital, a wholly owned subsidiary of BRAU, issued US$350 million of 12.5% guaranteed senior secured notes. Berau Capital sold US$100 million of 12.5% guaranteed senior secured notes on July 29 2010.
These notes bear interest from July 8 2010 at the rate of 12.5% per annum, payable semi-annually, commencing on January 8 2011. The maturity date of the notes is July 8 2015.
Within the same month, BRAU also entered into a US$400 million senior secured credit facility and drew down US$400 million available thereunder. 
The facility comprises two tranches: tranche A in a principal amount of US$300 million and tranche B in a principal amount of US$100 million. The tranche A has a maturity of 4 years and trance B has a maturity of 57 months. The facility is guaranteed by Berau Coal and other subsidiaries of BRAU.
Disclosure: No position at the stock mentioned above.         
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