PT Bukit Makmur Mandiri Utama (Buma), Indonesian mining contractor company, which is one of the biggest mining contractors in country, raise US$800 million loan from syndicated 10 bank.
The bank are PT Bank Mandiri Tbk, PT Bank Mizuho Indonesia, The Bank of Tokyo Mitsubishi UFJ, Ltd., CIMB Bank, Credit Agricole Corporate and Investment Bank, The Hongkong and Shanghai Banking Corporation Limited, ING Bank N.V,. Intesa Sanpaolo S.p.A. Hongkong Branch, Morgan Stanley, and Sumitomo Mitsui Banking Corporation.
The new loan facility -- which comprises a USD750 million 7-year term loan and a US$50 million 3-year committed revolving facility -- does not have a free cash flow covenant, while its Debt/EBITDA covenant allows for a maximum of 4x until Q1 2013.
The proceeds from the loan facility will refinance Buma's existing bank debt and fund future capex. Concurrently, the company has entered into USD500 million in 5-yearinterest rate swaps to hedge its interest rate risk. This provides some stability to interest coverage.
Moody's Investors Service sees no immediate impact on Buma Ba3 corporate family rating from its signing of a US$800 million senior secured loan facility and parent PT Delta Dunia Makmur Tbk 's recent announcement of a rights issue of up to 1.529 billion common shares. The outlook for Buma's ratings remains stable.
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