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

By Susanna Moon

Chicago, Aug. 8 – Indonesia’s PT Berau Coal Energy Tbk said it secured the needed consents to amend 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.

Holders had tendered $419,768,000, or 83.95%, of the 7¼% notes and $409,696,000, or 91.04%, of the 12½% notes by the end of the end of the solicitation at 5 p.m. ET on Aug. 5, according to a notice.

The consent fee for each $1,000 principal amount will be $10.00 for the 7¼% notes and $7.00 for the 12½% notes.

The company plans to enter into a supplemental indenture, with settlement of the consent fee on Aug. 14.

As previously announced, the company sought to amend the 12½% notes indenture to reduce to five days from 30 days the period for notifying holders of 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.

The consent solicitations began July 25. Holders need to be of record as of July 24.

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

Barclays, Citigroup and Standard Chartered Bank were the joint solicitation agents.

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

Berau Capital Resources II Pte. Ltd. was on a roadshow for a $450 million offering of notes due in 2019, as reported on July 28.

The coal producer is based in Jakarta.

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