Bumi signs new refinancing facility

IDX-listed coal mining group PT Bumi Resources Tbk has signed a new 15-month loan worth US$150 million to refinance the same amount of debt maturing in early August.

The syndicate of 10-12 existing lenders, including a mix of hedge funds and institutional investors, rolled over their commitments into the new facility along with arranger Credit Suisse, media reports said Monday.

News of the deal came just days after rating agency S&P lowered Bumi Resoruces? long-term corporate rating to CCC from B-, labelling Bumi Resources' capital structure "unsustainable" without a debt restructuring or asset sales. The move followed a downgrade by Moody's to Caa1 from B3 on July 22 for similar reasons. (*)