IndoCoal talks $600 million seven-year notes at Treasuries plus 325-350 bps

By Paul A. Harris

St. Louis, June 21 - IndoCoal Exports (Cayman) Ltd. is talking its $600 million offering of seven-year notes (//BBB-) at a spread to Treasuries of 325 to 350 basis points, according to an informed source.

The deal, which is being led by Merrill Lynch & Co., is expected to price Wednesday.

The notes will have a 3.1-year average life and will be secured by the coal export receivables of PT Kaltim Prima Coal and PT Arutmin Indonesia.

Proceeds will be used to refinance debt.

The issuer is a subsidiary of Indonesian mining firm PT Bumi Resources Tbk.

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