Indonesia’s Berau seeks consents to amend 12½%, 7¼% notes

By Marisa Wong

Madison, Wis., July 29 – Indonesia’s PT Berau Coal Energy Tbk launched consent solicitations on July 25 to amend the indentures governing its $500 million 7¼% guaranteed senior secured notes due 2017 and the $450 million of 12½% guaranteed senior secured notes due 2015 issued by subsidiary Berau Capital Resources Pte. Ltd., according to a notice.

The company is seeking to amend some provisions in the 12½% notes indenture to reduce the notice period – to five days from 30 days – in which the issuer is required to deliver a notice to noteholders with respect to an optional redemption and to amend some provisions in the 7¼% notes indenture to conform the existing covenant package of the 7¼% notes with the one being proposed for Berau’s new notes.

As announced last Friday, Berau Capital is proposing a Rule 144A/Regulation S offering of $450 million of senior secured notes due 2019.

The company needs consents from a majority of the existing notes to amend the indentures.

Holders of record as of July 24 are eligible to participate.

The consent solicitation expires at 5 p.m. ET on Aug. 5.

Settlement is slated for Aug. 14.

The company has mandated Barclays, Citigroup and Standard Chartered Bank as the joint solicitation agents.

D.F. King & Co., Inc. (212 269 5550, +44 207 920 9700, beraucoal@dfking.com) is the information and tabulation agent.

The coal producer is based in Jakarta.

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