BUMA completes refinancing of loan facilities
Thursday, February 16 2017 - 10:52 AM WIB
IDX-listed mining services company PT Delta Dunia Makmur Tbk. announced Thursday that its subsidiary PT Bukit Makmur Mandiri Utama (BUMA) completed on February 14 the refinancing of its US$603 million syndicated loan facilities, with SMBC as the facility agent, and its $15 million loan facility with PT CIMB Niaga Tbk.
Delta Dunia said in a statement that the total outstanding balance of both loan facilities was $454 million at the time of refinancing, were paid in full using (i) the proceeds from BUMA?s 5-year 7.75 percent $350 million Senior Notes issuance, (ii) $100 million LIBOR +3 percent loan facility from The Bank of Tokyo Mitsubishi UFJ, Ltd. (BTMU Facility), and (iii) BUMA?s internal cash. The Senior Notes was rated Ba3 by Moody?s Investor Service Inc., and BB- by Fitch Ratings, Ltd.
?The successful refinancing of its loan facilities is the result of BUMA?s ability to survive and turnaround during the prolonged downturn of coal industry in the past few years,? the company said in the statement. It also enables BUMA to extend its debt maturity profile, reduce amortization and improve cash flow, and allows for increased operational flexibility to support BUMA?s future growth, it added.
Editing by Reiner Simanjuntak