KPC decides on a loan

Indonesian coal producer Kaltim Prima Coal decides to take out a loan instead of its long awaited bond deal.

Kaltim Prima Coal KPC has mandated CSFB to arrange a syndicated loan to refinance a $325 million existing facility that the company took out last year. That loan was taken, in turn, to refinance an existing $187 million facility that had come up for repayment when KPC was bought by Bumi Resources from BP and Rio Tinto in October 2003.

The new senior facility will be two and half years in maturity and will be between $310 million and $385 million in size. It has an amortizing repayment schedule of 10 equal quarterly installments, starting three months after initial drawdown. It will carry a spread of 4% over three-month Libor.

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