bumi-withdraws-cb-after-investors-baulk-at-the-terms

Bumi withdraws CB after investors baulk at the terms

A $300 million issue from Indonesia's largest coal producer fails to attract investor interest due to a lack of compensation for a potential special dividend and other aggressive terms.
In a move rarely seen in the Asian CB market, Indonesian coal producer PT Bumi Resources yesterday pulled a $300 million convertible that had failed to attract sufficient investor interest even though it had been in the market for almost 24 hours.

According to sources, investors objected to some of the terms on the Credit Suisse-led deal, which was obvious by the fact that the price dropped below par in the grey market shortly after the launch in the early evening Tuesday Hong Kong time. Some traders said they were offered as low as 98.75% of face value.

In particular, investors didnÆt like the fact that there was to be no adjustment to the...
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