BREAKING: Bumi Resources ‘Close’ to Renewing KPC Concession, CFO Maintains Guidance for Tranche A/ Series A Repayment in Jan’22, Believes Apr’22 Repayment Will be Similar to Jan’22, Looks to Complete Repayment of Tranche A/ Series A Notes by End-’22

The management of Indonesian thermal coal miner PT Bumi Resources Tbk (BUMI) said during an investor call today, Dec. 2, attended by Reorg, that it is close to renewing the mining concession for PT Kaltim Prima Coal (KPC) - due to expire on Dec. 31 - to an IUPK. All documents required for the extension have been submitted and the company expects to receive the extension at the end of this month. Continue reading for Reorg's Asia Core Credit team's reporting on Bumi Resources, and request a trial to access reporting and analysis on hundreds more, stressed, distressed and high-yield credits. 

Additionally, Andrew Beckham, chief financial officer of the company, maintained the company’s guidance for a $90 million to $100 million repayment of the principal amount for its Tranche A/ Series A notes in January 2022 during the call, and said that he is hopeful for a similar repayment amount for the notes in April given that coal prices remain relatively strong in the fourth quarter of 2020. Beckham also maintained the company’s target to fully repay the Tranche A/ Series A notes by the end of 2022.

BUMI has also appointed Boston Consulting Group as advisors for the restructuring and/or refinancing of its $831.4 million Tranche B facility due December 2022 and $579 million Tranche C facility due December 2022, management noted during the call. As earlier reported, the company had appointed Mishcon de Reya as legal advisor, and said during a September investor call that it was in the process of appointing China International Capital Corporation (CICC) as advisor.

-- Rae Wee