After delays and several weeks of negotiations with nervous investors, PT Bukit Makmur Mandiri Utama Buma, Indonesia's second biggest coal mining contractor, finally priced a $315 million bond deal on Wednesday afternoon New York-time.
But the company was forced to pay a hefty 11.75% coupon to compensate for the leveraged nature of a concurrent share sale and takeover and, perhaps, for the complexity and relatively opaque nature of that takeover. Investors had also been anxious about the role of Hendrik Tee, a former chief financial officer at Asia Pulp Paper, which famously defaulted on $12 billion of debt in 2001. Tee has allegedly been advising Johan Lensa, Buma's founder and controlling shareholder.
People familiar...