Berau offers $450m senior notes
Friday, July 25 2014 - 03:06 PM WIB
London-listed Asia Resource Minerals plc (ARMS) announced the launch on Friday by Berau Capital Resources II Pte. Ltd., a wholly owned subsidiary of PT Berau Coal Energy Tbk (Berau), of an offering, pursuant to Regulation S and Rule 144A, of securities in the form of US$450 million of Guaranteed Senior Secured Notes due 2019, guaranteed by Berau and certain of its subsidiaries.
The proceeds, subject to successful completion of the offering, will be for the repayment and redemption of Berau's current $450 million outstanding 12.5% Guaranteed Senior Secured Notes due 2015.
Amir Sambodo, CEO of ARMS, said: "I am delighted to be able to report to shareholders that our refinancing plans are on track. Optimising Berau's capital structure and reducing our interest costs continues to be a key goal for us in view of the continued weakness in the coal market."
As previously reported, Berau continues to engage with the relevant authorities in Indonesia regarding its production quota for 2014. While the most recent Life of Mine Plan provided for a production tonnage in the current year of 25.75mt, the clear indication from the Indonesian authorities is that they continue to favour a cap on production tonnage.
?The most recently indicated proposed cap was 22.35mt and we are continuing to negotiate a potential increase to that. We are optimistic that we will be granted a cap that falls within a range between the most recently indicated cap and our most recent life of mine plan. We will update the market in due course when those discussions have concluded,? the firm said.
Editing by Johannes Simbolon