Borneo trying to get Marubeni on board
PT Borneo Lumbung Energi is apparently trying to get Marubeni Corporation on board of the US$3,25 billion acquisition of two coal mining assets from PT Bumi Resources Tbk.
"Senior officers of Renaissance Capital is in Tokyo to get Marubeni on board," said people close to the deal. Renaissance Capital's Samin Tan is the majority owner of Borneo Lumbung which supposedly close the deal last Friday.
No explanation on why Borneo failed to close the deal despite rumors of financing and legal issues.
"Lawyers are still fighting on each other," the executive said over the weekend.
It's not clear what subject they're fighting for. "But creditors and investors are worried about some life-time contracts with the mining subsidiaries. Besides they impose some conditions to make sure the cashflow management will secure the interest payments," he said.
Samin Tan dismissed speculation of financing difficulties last week saying Credit Suisse had raised the necessary US$2.1 billion loan and Singapore's UOB would provide US$700 million exchangeable bond.
It's the bond that Marubeni is being offered to. "It's not easy to sell bond at the moment," the executive said.
The loan being arranged by Credit Suisse will include US$1 billion over five years, $600 million over six years, and $500 million from an eight-year mezzanine loan, which usually includes warrants that can be converted into equity.
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"Senior officers of Renaissance Capital is in Tokyo to get Marubeni on board," said people close to the deal. Renaissance Capital's Samin Tan is the majority owner of Borneo Lumbung which supposedly close the deal last Friday.
No explanation on why Borneo failed to close the deal despite rumors of financing and legal issues.
"Lawyers are still fighting on each other," the executive said over the weekend.
It's not clear what subject they're fighting for. "But creditors and investors are worried about some life-time contracts with the mining subsidiaries. Besides they impose some conditions to make sure the cashflow management will secure the interest payments," he said.
Samin Tan dismissed speculation of financing difficulties last week saying Credit Suisse had raised the necessary US$2.1 billion loan and Singapore's UOB would provide US$700 million exchangeable bond.
It's the bond that Marubeni is being offered to. "It's not easy to sell bond at the moment," the executive said.
The loan being arranged by Credit Suisse will include US$1 billion over five years, $600 million over six years, and $500 million from an eight-year mezzanine loan, which usually includes warrants that can be converted into equity.
Labels: Bumi Resources, COAL, CSFB, MARUBENI
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posted by yosef at 5:26 PM
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