BUMI Raises US$2.63 Billion From Rights Issue, MCB

Photo by Bumi Resources

JAKARTA (TheInsiderStories) – Publicly listed coal miner PT Bumi Resources Tbk (IDX: BUMI) raised Rp35.09 trillion (US$2.63 billion) from rights issue and mandatory convertible bonds (MCB) issuance, said the company on Friday (28/7).

Previously, Bumi Resources has planned to convert its debt worth $3.8 billion into equity or new loans. The company announced get Rp26.63 trillion ($2.0 billion) from rights issue 28.75 billion shares with exercise price of Rp926.16 a share and MCB Rp8.46 trillion ($636.09 million).

The company controlled by Bakrie Group affirmed, it would result in reduction of present debt of $4.2 billion by 61 percent to around $1.6 billion. Its equity will be positive at $64.2 million, from current negative $2.78 billion.

BUMI said it will exchange the existing debt (to Country Forest Limited/CFL) under the $1.9 billion term loan, debt to China Development Bank Corporation under the $600 million term loan, the $375 million (9.25 percent interest rate) guaranteed convertible bonds issued by Enercoal Resources Pte Ltd and other syndicated loan, the $300 million (12 percent) guaranteed senior secured notes issued by Bumi Capital Pte Ltd, and the $700 million (10.75 percent) guaranteed senior secured notes issued by Bumi Investments Pte Ltd.

BUMI said that holders of existing debt will be entitled to receive new debt or securities and must make certain elections regarding the new debt or securities they are eligible to receive. 

BUMI will issue new senior secured debt, comprising of tranche A facility and tranche B facility, called as series A Notes and series B Notes. It will also issue a tranche C facility, mandatory convertible bonds, contingent value rights, and ordinary shares.

BUMI has earlier reported, for restructuring its debt, it will launch the right issue for 28.75 billion new shares priced at Rp926.16 per share, to raise total proceeds of $1.99 billion, equivalent Rp26.6 trillion. BUMI will also issue convertible bonds worth Rp8.4 trillion. Each 23,089 convertible bonds will be entitled to get 100 BUMI shares. PT Danatama will act as standby buyer for BUMI’s rights issue.

(Written by Linda Silaen, Email: linda.silaen@theinsidestories.com)