PT Bukit Makmur Mandiri Utama signed a $600 million term loan maturing in 2015 to finance a tender offer for dollar bonds and repay a loan from Sumitomo Mitsui Banking Corp.
The loan pays interest of either 475 basis points or 490 basis points more than the London interbank offered rate depending on the lender’s withholding tax obligations, according to data compiled by Bloomberg.
Bukit Makmur offered to buy back the outstanding notes from its Prime Dig Pte. unit’s $315 million of 11.75 percent notes due 2014, the company said in a Singapore stock exchange statement today. The $600 million loan will finance the tender offer and repay a $285 million credit facility from Sumitomo Mitsui, the statement shows.
Prime Dig’s notes rose to 105 cents on the dollar to yield 10.164 percent from a close of 102.5 cents yesterday, BNP Paribas SA prices show.
The deadline for bondholders to accept the offer is 11:59 p.m. New York time on Dec. 27, the statement said. A basis point is 0.01 percentage point.