Bumi Resources' Distressed Exchange With CIC Is First Step In Restructuring

2014-07-04

 

인도네시아 Bumi Resources, KPC 지분 19% CIC에 매각 인도네시아 최대의 석탄회사인 Pt Bumi Resources사는 역시 인니 최대의 석탄 광산인 PT Kaltim Prima Coal (KPC) 의 지분 19%를 중국투자공사 (China Investment Corporation, CIC) 에 950백만불 가격으로 매각함.

 

BR사가 CIC에 지고 있는 부채 1,989백만불을 상환하기 위한 방편이었는데, 따라서 그 부채는 1,039백만불로 줄어 듦.

 

KPC는 1982년에 BHP와 Rio Tinto가 50:50으로 합작 개발한 제 1세대 석탄 광산으로서 인니 탄광으로는 드물게 고열량탄을 생산하고 있음. BR사의 KPC 지분은 65%에서 46%로 감소함. (Tex Report 7.4)

 

July 4 2014,

 

BUMI RESOURCES Transfers 19% Stakes In KPC To CIC

Bumi Resources Needs US449.59 Million Refinancing

Bumi Resources Seeks US449.59 Million For Refinancing

 

BUMI To Carry Out A IDR8.04 Trillion Rights Issue

BUMI Pays Coupon on 2016 Bonds

BUSINESS IN INDONESIA: BUMI Earns US349.34 Million on Net Profit

CIC To Take Over KPC & BRMS Shares

Insani Baraperkasa Boosts Production To 2 Million Tons

 

Jibiphoto

JAKARTA-On 3 July 2014, PT Bumi Resources Tbk. (Bumi) (Ca Stable) has transferred a 19% stake in Kaltim Prima Coal (KPC) to China Investment Corporation (CIC). In exchange, CIC will forgive roughly US$950 million of the US$1,989 million of loans, accrued interest and other make whole costs due from Bumi.

 

"The completion of this first step in the CIC debt-for-equity exchange is positive for Bumi in that it meaningfully reduces its highest interest debt after months of negotiations with lenders" says Brian Grieser, a Moody's Vice President and Senior Analyst in press release on Thursday (07/03/2014).

 

"While this initial exchange is the first step in a much needed balance sheet restructuring, Bumi still has significant maturities in the near term that will need to be refinanced at time when its liquidity is weak and its balance sheet is over-leveraged" added Grieser.

 

Bumi will also exchange 42% of its holdings in PT Bumi Resources Minerals Tbk. (unrated) and US$150 million of Bumi equity with CIC for a further reduction in debt. The residual loan to CIC following these exchanges will be US$632 million and will bear interest at LIBOR plus 6.7%.

 

No interest or principle will be payable in the first 12 months. This second part of the CIC debt-for-equity exchange is expected to close in September 2014. We estimate that Bumi's debt-to-EBITDA will be around 9.0x following these transactions, assuming no other reduction in debt.

 

Bumi has also been involved in negotiations with lenders under its US$375 million convertible bonds due August 2014 in an effort to extend its maturity or restructure its terms.

 

There has not been an agreement to date with convertible bondholders. In addition, Bumi's first installment on its China Development Bank loan, of US$150 million, is due in August 2014. Given its cash position of US$28 million at 31 March 2014, we expect this loan payment will also be required to be restructured.

 

Therefore, the ratings are unlikely to change until Bumi has successfully addressed its upcoming debt maturities. Upon completion of its balance sheet restructuring, we will reconsider our ratings on Bumi, says Moody’s.

 

The CIC debt-for-equity settlement agreement was initially announced on October 9, 2013. At that time, Moody's commented that it views this exchange as a default that is part of Bumi's greater balance sheet restructuring.

 

Established in 1973 and listed on the Jakarta Stock Exchange in 1990, PT Bumi Resources (Bumi Resources) is Indonesia's largest thermal coal producer and one of the top three largest thermal coal exporters by tonnage globally. Through its principal assets -- now roughly 50% stake in PT Kaltim Prima Coal (KPC) and its 70% stake in PT Arutmin -- Bumi produced 82 million tons (mt) of coal in 2013.