PT Bumi Resources (BUMI) said it plans to seek more time to repay some of its dollar-denominated debt after the Indonesian miner delayed a coupon payment last month on separate notes amid a slump in coal prices.
The company intends to seek consent from bondholders to extend the maturity of its $375 million 9.25 percent convertible bonds due in August, it said in a stock exchange filing today. It hired Deutsche Bank AG as sole agent for the possible plan.
The latest move is part of its refinancing plan to ease $4.7 billion of short-term debt while coal prices extended a two-year slide. The plan also involved selling as many as 26.17 billion of new shares in June to repay loans it owes to China Investment Corp., it said in a statement last month.
“The company is choosing the only option it has on the table,” said Xavier Jean, a credit analyst at Standard & Poor’s in Singapore. “It’s difficult to imagine that the bondholders will not provide consent, but the devil is in the details. What we need to see is whether there will be a sufficient number of bondholders who will hold out and try to get a better deal.”
Dileep Srivastava, a company director at Bumi, couldn’t be reached for comment by phone. He didn’t immediately reply to an e-mail seeking comment concerning debt payments.
The convertible notes, sold by its unit Enercoal Resources Pte. in 2009, slid 9.06 cents to 35.27 cents on the dollar as of 4:12 p.m. in Singapore, according to Bloomberg-compiled prices. They may be converted into the company’s stock at 3,367 rupiah, according to the bond terms. The stock has dropped 32 percent this year to 205 rupiah in Jakarta.
Bumi last month delayed coupon payment on its $300 million of 12 percent notes maturing in November 2016, saying it planned to make the payment in the week of May 26 after an original due date of May 12.
“What we’ve seen with Bumi in the past is that they generally manage to pull off last-minute agreements on loan refinancing or interest payments,” said S&P’s Jean.
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