Moody's Investors Service has assigned a definitive B1 rating to the US$500 million, 7.25%, 5-year senior notes issued by PT Berau Coal Energy Tbk (Berau).
The rating outlook is positive. The notes are unconditionally and irrevocably guaranteed by PT Berau Coal, PT Armadian Tritunggal, Empire Capital Resources Pte Ltd, Winchester Investment Holdings PLC and Aries Investments Limited, Seacoast Offshore Inc and Maple Holdings Ltd.
The definitive rating on this debt obligation confirms the provisional (P)B1 bond rating assigned on 27 February 2012, based on the fact that the amount raised from the bond issue and the covenants stated in the Offering Memorandum Circular of 6 March 2012 are consistent with Moody's expectations.
About US$345 million of the new issue will be used to refinance Berau's existing credit facility, and the balance will fund capital expenditure and general corporate purposes.
Disclosure: No position at the stock mentioned above.
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