Indonesia’s BUMI Pays US$167M Trance A Debt

Coal Mining - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian miner, PT Bumi Resources Tbk (IDX: BUMI) has paid US$167.48 million Tranche A Principal and Coupon till date, said the company in written statement on Monday (15/10).

BUMI confirms having processed a third payment of $52.88 million by the respective facility agents today, representing principal of $42.02 million and interest of $10.86 million for Tranche A.

Director of BUMI Dileep Srivastava said in a written statement, with this third quarterly payment, the company has now paid a total $167.48 million in cash, consisting of Tranche A principal $91.07 million and interest of $76.41 million including accrued and back interest. The next settlement on Tranche A is due on Jan. 8, 2019.

PIK Coupons from Apr. 11 till Oct. 15, 2018 on Tranches B and C are also being capitalized.

Previously, BUMI has paid its second payment with total amount $114.6 Million Payment on July 10. 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.

Before the second payment, BUMI had already redeemed some funds for the instrument. 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, 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.