Indonesia's Berau Coal sets talk for $350 million five-year notes

By Reshmi Basu

New York, Dec. 6 - Indonesian coal producer PT Berau Coal set price guidance for a $350 million two-part offering of senior notes (B1//B+), according to a market source.

Both tranches will carry a tenor of five years.

Guidance for the tranche of fixed-rate notes was set at the 9¾% area.

Meanwhile a tranche of amortizing floating-rate notes was talked at the three-month Libor plus 400 basis points area.

Merrill Lynch is the bookrunner for the Rule 144A and Regulation S issue, which will be issued via Empire Capital Resources Pts. Ltd (Singapore).

Berau Coal will guarantee the notes.

Pricing is expected to take place on Friday, following the completion of investor presentations in the United States.

Proceeds will be used to refinance existing debt, for capital expenditures and for general corporate purposes.

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