NISP Bumi Resources appoints three underwriter for bonds issuance (BUMI, Rp2,100, Buy)

· It is reported that Bumi Resources has appointed three underwriters to help the company in issuing US$ bonds. This news is in response to Bumi’s US$430mn bonds that will mature this year.
· The company holds US$300.0mn of convertible bonds II that is puttable starting in 25 November 2010 with put price at 100.77%. The price will be higher if the company exercises its option on its next agreed schedule on 25 May 2012 (102.01%) and 25 November 2014 (104.33%)
· Bumi has not given further details or confirmation on this news; however, we foresee the company will refinance these bonds with other non conventional issuance.
· Furthermore, we are currently waiting for Bumi’s plan on its non pre-emptive right issuance as the company said this action will be done no later than 30 September 2010.
· Currently, BUMI is trading at 2011F PER of 13.4x and EV/EBITDA of 5.7x, Buy.