Berau to buy back bonds worth $950m
Tuesday, November 24 2015 - 01:15 AM WIB
IDX-listed coal miner PT Berau Coal Energy Tbk announced Monday it would hold tender to buy back notes maturing in 2015 and 2017 with cash from bondholders in a bid to help improve its financial structure.
The company said in a statement that it would buy back guaranteed senior secured notes (12.5% interest) worth US$450 million, which matured in July 2015, issued by subsidiary Berau Capital Resources Pte Ltd and guaranteed by the company, and $500 million notes (7.25%) maturing in 2017 issued by the company.
Berau said that the tender will be held from November 24 to December 16.
PT Berau Coal, the main operating subsidiary of the company, owns a 118,400-ha mining concession located in Berau Regency, East Kalimantan province.
The well-diversified Sinar Mas Group through Asia Coal Energy Ventures (ACE) acquired more than 73 percent stake in LSE-listed Asia Resource Minerals plc (ARMS), which owns nearly 85 percent stake in Berau, in the middle of this year.
Editing by Reiner Simanjuntak