August 4, 2014 / 11:27 AM / in 5 years

Indonesia's Bumi says in talks to change terms of $375 mln bonds

JAKARTA, Aug 4 (Reuters) - Indonesian coal miner PT Bumi Resources Tbk said it is negotiating with the holders of its $375 million bonds due Aug. 5 to extend the payment date to at least April 2018 and cut the annual coupon to below 7 percent from 9.25 percent.

Bumi, whose stock hit an 11-year-low last month on fears of a debt default, has until Aug. 12 to reach a new agreement with its bondholders, the company said in a stock exchange filing on Monday.

Bumi is Asia’s biggest thermal coal exporter and is controlled by Indonesia’s influential Bakrie family. It is one of several Indonesian companies to have funded expansion using debt. The miner’s current problems have highlighted the impact of a fall in commodity prices and slowing growth in Southeast Asia’s biggest economy.

Moody’s Investors Service said on Monday that depressed coal prices will pressure Indonesian miners’ credit quality over the next 12-18 months and Bumi is the weakest positioned.

“The company faces substantial near-term maturities of more than $1 billion over the next 12 months, and does not have the internal capacity to fund these maturities,” the ratings agency said.

Last month, Bumi swung to a net profit of $168 million for the six months ended June from a $248 million loss a year earlier, helped by the sale of a subsidiary.

But revenue fell to $1.58 billion from $1.86 billion and the company’s cash stood at $48.7 million at the end of June.

The miner is part of the Bakrie Group which earlier this year exited London-listed Asia Resource Minerals Plc, formerly Bumi Plc. (Reporting by Eveline Danubrata and Fransiska Nangoy; Additional reporting by Umesh Desai in HONG KONG. Editing by Jane Merriman)

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