Bumi confirms CB maturity extended to April 2018

By Romel S. Gurky

IDX-listed coal giant PT Bumi Resources Tbk confirmed that required quorum of convertible bond (CB) holders was exceeded and near unanimous consent secured by vote to extend CB maturity to April 2018 in the holders? meeting held on Friday in Singapore.

Any default now stands waived as part of this agreement, the company said in a statement.

The unsecured US$375 million convertible bonds maturing in August 2014 would be replaced by CB's and secured pari passu in the pool of intercreditor debt, it added.

Key terms of the CB?s extended to April 2018 are :
(i) Principal Bond Amount: US$374.9 million.
(ii) Maturity Date: 7 April 2018.
(iii) Interest payment terms: 6.00% p.a. from 25 August 2014.
(iv) Conversion Period: Conversion period from 7 September 2015 up to 23 March 2018.
(v) Conversion price: IDR250.
(vi) Security: Security package under Intercreditor Agreement.
(vii) Guarantee: BUMI guarantees Enercoal?s obligations.

?These replaced CB's represent the next step in the company?s previously announced plan to optimize debt, lower interest charges and improve liquidity in a challenging coal price and sector environment,? said Bumi President Director, Ari Hudaya.

The company said it also expected to close the remaining debt for equity swap transactions and issue new equity with rights shortly to further strengthen fundamentals and its capital structure.

Editing by Reiner Simanjuntak