KPC to pay 400 basis points over Libor for upcoming loan
Wednesday, September 15 2004 - 02:07 AM WIB
East Kalimantan-based coal mining giant PT Kaltim Prima Coal (KPC) plans to pay around 400 basis points over the London interbank offered rate (Libor) for its planned U.S. dollar-denominated syndicated loan, which is due to close later this week.
KPC is seeking to raise between $310 million and $385 million through a 2.5-year loan. Credit Suisse First Boston Corp. is the arranger of the deal.
Proceeds of the debt will be used to refinance some acquisition-related debt which, after amortization, amounts to around $385 million. KPC needs to make a repayment on that on Oct. 13, a company official said.
Kaltim Prima had initially -ped to refinance the debt through an international bond issue. However, market conditions turned sour toward much emerging market debt earlier in the year, making it too expensive.
Publicly listed PT Bumi Resources is the parent company of KPC. (*)