Indonesia’s BUMI Pays Debt US$114.6M

JAKARTA (TheInsiderStories) – Indonesia’s coal miner, PT Bumi Resources Tbk (IDX: BUMI) announced has paid its Tranche A Principal
and coupon with total amount US$114.6 Million Payment, said the company on Wednesday (10/07).

That number is equivalent to about 19 percent of the value of tranche A $600 million. This payment is the second term of the previous one.

Director of BUMI Dileep Srivastava, said the miner having processed a second payment of $48.52 million by the respective facility agents on July 10 representing principal of $37.67 million and interest of $10.85 million
for Tranche A.

With this second quarterly payment, the company has now paid a total US$114.6 million in cash consisting of Tranche A principal $49.05 million and interest of $65.55 million including accrued and back interest.

Before the second payment made yesterday, BUMI had already redeemed some funds for the instrument. The spokesman said, the next settlement on Tranche A is due on Oct. 15, 2018. Coupons from April 11 till July 10 on Tranches B and C are also being capitalized.

Based on a peace agreement made with creditors last year, BUMI is required to issue new shares of $1.99 billion which is divided into three tranches A, B, and C. The shares issued are Series B with an exercise price of Rp 926.16 each.

The value of tranche A and B equals. Both have a value of $600 million each. Thus, the total value of both reached $1.2 billion. While the tranche C has a value of $406.99 million. This tranche is intended for separatist lenders.

BUMI has set Dec. 11, 2017 as the effective date for the exchange for the old debts worth $2.6 billion with the new securities and new loans. Srivastava said on Nov. 7, 2017, that its three Special Purpose Vehicles (SPVs), namely Enercoal Resources Pte Ltd, Bumi Capital Pte Ltd, and Bumi Investment Pte Ltd., the issuers of Guaranteed Convertible Bonds (due 2014), Guaranteed Senior Secured Notes (Due 2016 and 2017) have conveyed Settlement Instructions to eligible lenders on Dec. 5, 2017.

“The debt composition plan is in its final stage of implementation when the debt for equity and MCBs is expected to be exchanged with eligible lenders. The above debt for equity conversion has turned net equity to positive $207 million compared with negative net equity of $2.8 billion in the first half of 2017,” he said.

The exchange consideration formula for each issue that Note-holders should expect to receive for each $1000 principal amount has also been advised by value of New Senior Secured Debt, mandatory convertible bond, contingent value rights and shares, as applicable.

The mechanism, procedure and relevant details for the settlement have been described. It has also been advised that in terms of the Debt Composition Agreement, Holders who failed to participate by submitting their Notice of Election prior to Sept. 11, 2017 would have their applicable notes cancelled as of Dec. 11, 2017 (the present effective date).

The individual settlement notices by the 3 SPV’s on Dec. 5, 2017 have already been conveyed to eligible lenders and the beneficial owners.

BUMI claimed hat is creditors have responded well with the company’s debt restructuring. The company, it said, attended several credit and equity investor forums in Indonesia and abroad with quality international and local brokering houses to highlight its turnaround story.