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 callable after three years.
The issuer was Berau Capital Resources, with Berau Coal Energy and all of its active subsidiaries, including coal producing entity Berau Coal, as guarantors.
Investors looked to Adaro 7.75% $800 million,...