Bumi Resources has announced the pricing of its US$300mn 12% Guaranteed Senior Secured Notes due 2016 (“Notes”) to be issued by Bumi Capital Pte. Ltd. The Notes are unconditionally and irrevocably guaranteed by the Company and certain of its subsidiaries. The Notes are expected to be issued on 13 November 2009 and to mature on 10 November 2016. The Notes will bear interest at a fixed rate of 12% per annum, payable semiannually in arrears in May 10 and November 10. The Company intends to use the net proceeds of the offering for initial capital expenditures and mine exploration and development expenditures at the Dairi Project of Herald Resources Ltd. (a subsidiary), future acquisitions and investments in mining related companies, and working capital and general corporate purposes.
Bumi currently has US$1.9bn debt with CIC, US$375mn 9.25% p.a. convertible bond (conversion price: Rp3,250/share) and US$102.5mn zero coupon convertible bond (conversion price : Rp3,366.9/share). With the new issuance total debt will be lifted to US$2,677.5mn or 2.56x FY09 estimated EBITDA. The USS375mn CB has negative pledge of 3x Total debt to EBITDA. Excluding the new debt, which we have not incorporated into our model, EBITDA/interest coverage for FY09F and FY10F are 10.2x, and 2.9x. Bumi will start to have difficulties in the payment if coal price falls below US$55/ton (Newcastle price). At Rp2,300, Bumi is trading at 11.8x PER09F and 20.2x PER10F, with EV/EBITDA 09F of 6.0x and EV/EBITDA 10F of 5.7x. We are maintaining our Buy call despite corporate actions so far has been detrimental to its profitability without apparent benefits to shareholders (especially minority). We are taking a position of still having ‘good faith’ in the management ability to create value , which admittedly is eroding as time passes.
Tidak ada komentar:
Posting Komentar