Indonesia's BUMA begins tender offer for 11¾% notes, solicits consents

By Angela McDaniels

Tacoma, Wash., Nov. 29 - PT Bukit Makmur Mandiri Utama subsidiary Prime Dig Ptd. Ltd. began a tender offer and consent solicitation for the companies' $315 million of 11¾% senior secured notes due 2014, according to a company news release.

The company is seeking consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default and to direct the trustee to execute an amendment deed to the security sharing deed, which would permit BUMA to refinance the notes and repay outstanding debt under its $285 million credit facility with Sumitomo Mitsui Banking Corp., Singapore Branch, by entering into a new $600 million five-year credit facility.

Noteholders who tender must also deliver consents.

The company will pay $1,060 per $1,000 principal amount of notes. This includes an early consent payment of $55 for each note tendered by the early consent deadline, which is 5 p.m. ET on Dec. 10.

The tender offer and consent solicitation will expire at 11:59 p.m. ET on Dec. 27, and the settlement date is expected to be Dec. 30.

The company expects to redeem any notes that remain outstanding following the tender offer at par.

A portion of the proceeds of the new credit facility will be used to fund the tender offer and the expected redemption.

BUMA is a Jakarta, Indonesia-based coal-mining company.

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