Thursday, June 9, 2011

Bakrie Plantations picks 3 arranger

PT Bakrie Sumatera Plantations Tbk, the Indonesian plantation company own by Bakrie Group, hired three banks to help it borrow $250 million in a five-year term loan.

PT Bank Internasional Indonesia Tbk, Credit Suisse Group AG and Raiffeisen Bank International AG are organizing the facility and syndication to other lenders is expected to be completed in July.

Proceeds will be used to refinance debt, including the company's $160 million of 10.75 percent notes due in November. The loan, secured against Bakrie Plantaions palm plantation assets,
is being structured so that creditors to other parts of the company's business have no recourse to it.

The company acquired the Domba Mas Group, a palm oil products maker, in October and agreed to take over about $180 million of bad debt owed to PT Bank Mandiri Tbk
The $250 million facility will pay a margin to offshore lenders of 700 basis points more than the London interbank offered rate, rising to 900 basis points after one year. Onshore lenders will be offered a margin of 800 basis points more than Libor, rising to 1000 basis points, or 10
percentage points, after 12 months.

Offshore lenders will initially receive an all-in payment, including fees, of around the high 800 basis-point mark, compared with the high 900 basis-point area for onshore lenders.

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