Mar 16, 2011

BUMA seeks US$750 mio for refinancing

Indonesia's second largest coal contractor PT Bukit Makmur Mandiri Utama (BUMA) intends to raise 7-year loan facility worth US$750 million to refinance a US$600 million loan it secured 4 months ago.
As reported by Euroweek yesterday, BUMA wants more money, a longer maturity, and looser covenants, but has shocked bankers by demanding tighter pricing too.
Andre Soelistyo, Corporate Secretary of Delta Dunia, was unreachable when Insider Stories contacted his cellular today.
BUMA is a wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), which is indirectly controlled by three famed shareholders Texas Pacific Group, China Investment Corporation, and Government of Singapore's Investment Corporation.
BUMA is currently in talks with 12-15 lenders, mostly existing lenders, to secure a new financing of US$750 million with saggy covenants.
"About US$600 million will be used to refinancing existing facility with tight covenants and US$50 million is planned as working capital," a source close to the deal said.
Delta Dunia's controlling shareholders seem unhappy with current covenants related to the existing facility. "This is why BUMA is coming to its lenders for the new loan." If the negotiation is accomplished, BUMA schedules another refinancing in March or April this year. To read the remaining articles, please read Delta Dunia & new commissioner.

Disclosure: No position at the stock mentioned above.

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