Golden Energy sells US$150m in debt due 2023 at 9% coupon

INDONESIAN coal miner, Golden Energy and Resources Limited on Friday said it has priced its US$150 million senior secured notes due Feb 14, 2023 at a coupon of 9 per cent per annum.

The issue price will be 98.53 per cent of the principal amount of the notes, and the yield to maturity at issue stands at 9.4 per cent. The notes are secured by shares of the company's subsidiary, Golden Energy Mines; and expected to be issued on or about Feb14, 2018, Golden Energy said.

They may be redeemed early by Golden Energy at any time, subject to a redemption premium for bondholders if the notes are called before three years.

In addition, if Golden Energy redeems up to 35 per cent of the notes before three years with proceeds from certain equity offerings, a redemption price of 109 per cent of par shall apply. That additional provision is conditional upon at least 65 per cent of the principal amount of notes remaining outstanding after the redemption and that the redemption takes place within 60 days of the close of the equity offering.

According to Golden Energy, US$50 million of the net proceeds from the offering of the notes will be used for the prepayment of amounts outstanding under a secured term loan facility. The remainder will be used for general corporate purposes, including potential acquisitions, joint ventures and investments to implement its growth strategy.

Separately, Golden Energy said that it has been granted an extension by the Singapore Exchange to announce its unaudited financial statements for the financial year ended Dec 31, due to the company's pricing of its notes.

The company will announce its financial results on March 9, 2018.

Golden Energy closed down 2.35 per cent to trade at US$0.314 apiece on Thursday.