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 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,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222