Thursday, December 07, 2006

Adaro secured bondholders consent

PT Adaro Indonesia has secured bondholders consent for up to USD300 million refinancing facility. Adaro, the second largest coal producer in Indonesia behind PT Bumi Resources Tbk's subsidiary PT Kaltim Prima Coal, got the consent from majority 93% of bondholders, far above the 65% requirement.

Adaro had total assets of
US$1.4 billion at March 31, 2006. It is the largest single-mine coal producer
in Indonesia, with capacity of 38 million tons per year in 2006 and reserves
of at least 14 years.
In September, Standard & Poor's affirmed its 'B+' corporate credit rating on PT Adaro
Indonesia with stable outlook.
According to the rating agency, Adaro has an aggressive capital structure. The pro forma total debt, which includes mezzanine debt, to capitalization of Adaro and its related companies was 80% at March 31, 2006, while total debt to annualized EBITDA was 4x. Nevertheless, Adaro's profitability is improving, as recently negotiated
long-term sales contracts take into account higher spot prices and increased
production volume.

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