as published in Bisnis Indonesia daily newspaper
Wednesday, 09/12/2009 00:00 WIB
Bumi finances US$300 million to Recapital
Credit Suisse handles US$600 million fund collection
JAKARTA: PT Bumi Resources Tbk provided US$300 million loans to PT Recapital Advisors to help finance the acquisition of 90 percent shares of PT Berau Coal worth US$1.48 billion.
An informed executive said the transaction of 90 percent acquisition of Berau shares is fully funded by the loan in many forms and schemes.
The acquisition financing structure document shows Recapital acquired Berau through PT Bukit Mutiara. The subsidiary firm of Recapital with its 99.69 percent possession got US$300 million subdebt from Bumi as the early finance for Berau acquisition transaction.
The US$300 million fund was gained by Bumi from convertible bonds issuance with seven years tenure November. Besides, Bumi has just tapped US$150 million loans from JPMorgan Chase Bank N.A and JPMorgan Chase Bank N.A of Hong Kong branch office.
The loan is allotted to help Berau pay the US$325 million bonds quicker.
Finance Director of Bumi Andrew Beckham admitted the company invested fund to Recapital involving marketing agreement from one coal producer. The investment is expected to provide at leat 25 percent profit.
On the other side, Recapital has appointed Credit Suisse to seek and manage debt facility up to US$600 million. The loan consists of two parts considered as the OpCo and HoldCo facilities with each values at US$300 million.
OpCo facility will be booked by Empire Capital, a subsidiary firm with full ownership of Berau, to finance the quicker payment scheme of US$325 million bonds.
Berau is said to have held a meeting with bonds holders to buy at premium price of 104.68 percent. But when contacted, President Director of Berau Bob Kamandanu and Director of PT Armadian Tritunggal Handy Soetedjo refuted to comment.
HoldCo facility worth at US$300 million is meant to finance Berau stocks for by Bukit Mutiara.
Then, Bukit Mutiara also issued vendor notes worth US$580 million to Berau stock holders. (Bisnis/pul/21)