Bukit Makmur signs amendments to loan facility agreements

By Romel S. Gurky

IDX-listed PT Delta Dunia Makmur Tbk announced on Monday that its primary operating subsidiary, PT Bukit Makmur Mandiri Utama, has signed an amended and restatement agreement to its US$800 million syndicated loan facility and an amendment agreement to its $25 million PT ClMB Niaga Tbk credit agreement with PT CIMB Niaga Tbk (both called facilities).

Delta has made principal and interest payments under the facilities on a timely basis and without any disruption or delay since its receipt of these facilities in 2011. Delta and its lenders under the facilities have entered into the amendments in response to the downturn in the coal industry. The facilities' maturities and average lives were extended and covenants amended to enhance:
? the sustainability of Bukit's debt arrangements;
? the funding of Bukit's operational requirements;
? the ability of Bukit to pursue growth opportunities; and
? the ability of Bukit to absorb business and financial volatilities.

Lenders under the amended syndicated facility include Aozora Bank Ltd., CIMB Bank Berhad-Singapore Branch, Credit Agricole Corporate and Investment Bank, Indonesia Exim Bank-Jakarta, ING Bank N.V.-Singapore Branch, Intesa Sanpaolo S.p.A.-Hong Kong Branch, PT. Bank DKI, PT. Bank Mandiri (Persero) Tbk, PT. Bank Mizuho Indonesia, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., and The Hongkong and Shanghai Banking Corporation Limited-Jakarta Branch. Highlights of the amended syndicate facility's terms compared to terms originally agreed in 2011 have been set out below:

?	2014 amended terms	2011 facility terms
Amended Facility Amount/ Original Facility	$602.69mn	$800.00mn
Final Maturity	Dec. 31, 2019	March 31, 2018
Remeining Average Life	c.4.74 years	c.2.05 years
Interest Margin*	3M Libor + 400bps to 500bps	3M Libor + 375bps
* Interest margin for WHT Lenders. For WHT Neutral Lenders, the applicable Interest Margin is increased by 25bps p.a. over the Interest Margins for WHT Lenders

The CIMB Niaga facility was amended under similar terms to the syndicate facility.

As reported previously, Delta recorded a net profit of $11 million in the first half of 2014, compared to a net loss of $6 million in the first half of 2013, on the back of 6% YoY increase in EBITDA to $91 million.

In US$mn?	1H 2014	1H 2013	YoY
EBITDA	?91	86	6%
EBITDA Margin	31.5%	27.7%	n.m.
Operating Margin	12.9%	6.9%	n.m.

Delta and Bukit are satisfied with the completion of the amendments. These; together with its better performance in the first half of 2014 provides Bukit with the platform to face the current challenges in the industry, and to pursue improvements in operations, performance and stakeholder values, the firm said.

Editing by Johannes Simbolon