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Bumi Resources rights offering to begin in May
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Heavy equipment and trucks pass through a coal mining site in East Kalimantan on Aug. 19. (Antara/Wahyu Putro A)
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ndonesia's largest thermal coal mining company, PT Bumi Resources, has announced that its planned rights issue will take place from May 26 to June 8. The move is part of the company’s efforts to restructure commercial debt amounting to US$4.2 billion.
Bumi will issue 28.75 billion pre-emptive rights to subscribe securities (HMETD), each with a nominal value of Rp 100 (1 US cent). Those pre-emptive rights are expected to be listed in the bourse on June 12.
The politically-wired Bakrie family's company will also issue 9.13 billion mandatory convertible bonds (MCB) with an annual coupon rate of 6 percent and a maturity period of seven years.
“The reference price for equity and MCB is reconfirmed at Rp 926.16 per share,” Bumi director and corporate secretary Dileep Srivastava told The Jakarta Post on Monday.
With that reference price, Bumi expects to collect a total of Rp 26.6 trillion from the rights issue and Rp 8.45 trillion from the MCB.
In addition to the rights issue, Bumi also plans to issue tradable contingent value rights (CVR) worth $100 million for creditors of its new senior secured bond. The CVR will be due in five years.
The company aims to replace its debts from China Development Bank (CDB) with a new senior secured bond or a tranche C facility.
If the restructuring goes as expected, Bumi will be able to reduce its commercial debt to $1.6 billion. (bbn)
