Berau Coal Energy issues $350 million high-yield bond

Indonesia’s fifth largest coal producer, Berau Coal Energy, reopens Asia’s high-yield market despite a looming legal dispute and a difficult market backdrop that has kept other borrowers from printing.

The Asian high-yield markets were reopened last week with a B2B rated $350 million five-year issue from Berau Coal Energy. It was the first deal to come to market from a single-B borrower since Melco Crown Entertainment issued its $600 million 10.25% eight-year bond in mid-May.

The bonds pay a coupon of 12.5% and were priced at par. The maturity date on the 144AReg-S senior secured notes has been set to July 8, 2015, but they are...

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