KPC to get $385 million loan from CSFB
Saturday, September 18 2004 - 01:15 AM WIB
The management of coal producer PT Kaltim Prima Coal (KPC) has decided to receive a syndicated loan of between US$310 million to $385 million from the Credit Suisse First Boston (CSFB) in October, the Investor Daily Indonesia newspaper reported in its Saturday edition.
KPC said that with the loan disbursement, the company will delay the planned $350 million to $360 million euro band issue. The East Kalimantan-based company wanted to use this money for refinancing debts.
However, the company didn’t disclose the details about interest and other conditions.
“In fact, we will delay our bond issue, whose value is between $350 million to $360 million, temporarily. If there is no hurdle, we will get syndicated loans of between $310 million to $385 million from CSFB. This loan will be faster in compare to the bond issue. Around October, the money will be released. It is under still process,” KPC’s director of finance Eddie J. Soebari told the Investor on Thursday night.
Eddie is also the director of finance of PT Bumi Resources, which bought 100 percent shares of KPC in October 203.
Eddie said the company was still interested in issuing bonds, but the timing has yet to be decided.
“Our bond rating is good. So we don’t want throw this opportunity just like that. If the process of loans goes well, later we will have a plan to refinance our debts with the eurobond,” Eddie said. (*)