Empire Capital Resources Pte Limited, the company fully owned by PT Berau Coal, plans to issue US$300 million bonds in the near future to refinance US$325 million bonds.
In response, Moody's Investor Service on 9 February revoked the local currency bond rating of B1 with stable prospect from Berau. Laura Acres, Vice President Senior Credit Officer of Moody's said the rating revocation was due to business reason. But she failed to detail further.
The rating was given by Moody's on December 14, 2006 following the completion of bond issuance worth US$325 million by Empire guaranteed by Berau as the holding firm.
Berau is the fifth largest coal producer and exporter nationwide. The company operates three active mining in East Kalimantan.
The estimated mining resources are worth 1.9 billion tons of coal with proven and proposed reserves of 280 million tons.
Empire Capital is involved in the fund raising structure for PT Recapital Advisors to acquire 90 percent Berau shares in December 2009-January 2010 worth US$1.52 billion.
In the document of funding structure proposal for Berau acquisition that mentions Recapital will acquire most Berau shares through PT Bukit Mutiara, the subsidiary firm with 99.6 percent possession.
To finance the acquisition, Bukit Mutiara will get fund injection form PT Bumi Resources Tbk worth US$300 million, and vendor bond issuance worth US$580 million, and two funding facilities of HoldCo Facility and OpCo Facility totally worth US$600 million, or each US$300 million.
Op Co Facility is the debt collected by Empire Capital, guaranteed by Berau. Berau Coal targets the production volume up to 17 million tons this year as from 14 million tons in 2009.
The rating was given by Moody's on December 14, 2006 following the completion of bond issuance worth US$325 million by Empire guaranteed by Berau as the holding firm.
Berau is the fifth largest coal producer and exporter nationwide. The company operates three active mining in East Kalimantan.
The estimated mining resources are worth 1.9 billion tons of coal with proven and proposed reserves of 280 million tons.
Empire Capital is involved in the fund raising structure for PT Recapital Advisors to acquire 90 percent Berau shares in December 2009-January 2010 worth US$1.52 billion.
In the document of funding structure proposal for Berau acquisition that mentions Recapital will acquire most Berau shares through PT Bukit Mutiara, the subsidiary firm with 99.6 percent possession.
To finance the acquisition, Bukit Mutiara will get fund injection form PT Bumi Resources Tbk worth US$300 million, and vendor bond issuance worth US$580 million, and two funding facilities of HoldCo Facility and OpCo Facility totally worth US$600 million, or each US$300 million.
Op Co Facility is the debt collected by Empire Capital, guaranteed by Berau. Berau Coal targets the production volume up to 17 million tons this year as from 14 million tons in 2009.
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