Sole bookrunner Merrill Lynch has priced a dual tranche $325 million fund raising exercise for Indonesian coal interest Berau Coal. The deal, launched in late November, consists of a $225 million five-year non-call three fixed-rate tranche and a $100 million amortising five-year FRN. Both tranches priced at the tight end of revised guidance.
Merrill initially marketed the deal at 9.75% for the fixed-rate notes and 400bp over Libor for the FRN, however, as the deal picked up traction, Merrill tightened guidance to a range of 9.375% to 9.625% and 375bp to 400bp over, respectively.
When the B1B rated deal closed, the fixed-rate note priced at par with a coupon of 9.375%, a...
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