* Two loan facilities extended for three more months -Bumi
* Hedge fund manager Noonday, Credit Suisse among lenders
* Bumi in talks with sovereign fund CIC to convert debt into
By Janeman Latul
JAKARTA, Oct 1 (Reuters) - A unit of Indonesia's biggest
miner, PT Bumi Resources, has extended $425 million
worth of maturing loans for three more months, the company said,
averting an immediate financial squeeze as it struggles with a
growing pile of debt.
It was another last minute debt extension by the coal mining
group, controlled by the politically-connected Bakrie family,
after Bumi Resources refinanced a maturing $150 million debt in
August at a high cost.
PT Bumi Resources Minerals, a unit of PT Bumi
Resources, extended two loan facilities -- $100 million and $325
million -- from Credit Suisse due this month to
December 2013, the company said in a statement.
The loans arranged by Credit Suisse involved creditors such
as U.S. hedge fund manager Farallon Capital Management's Noonday
unit and the Swiss bank itself, sources with direct knowledge of
the matter said.
The extension comes after Moody's Investors Service
downgraded the corporate family and senior secured bond ratings
of PT Bumi Resources in late July to Caa1 from B3.
Bumi faces the financial pressure of a much weaker
commodities market, slowing economic conditions in China and on
top of that huge liquidity constraints as a result of debt
maturities, Philipp Lotter, Singapore-based managing director of
corporate finance at Moody's, told Reuters last month.
The company did not disclose the interest rate on the loans.
But sources said the $100 million loan was originally an
18-month facility and had an interest rate of LIBOR plus 6
percent, while the $325 million loan was an over 2-year facility
with an interest rate of LIBOR plus 7 percent. LIBOR is the
London Interbank Offered Rate.
Bumi Resources took an expensive $1.9-billion loan in 2009
from sovereign wealth fund China Investment Corp and
has been trying since then to swap the debt into equity at one
of its units.
"They are discussing a debt-to-equity swap with CIC," said
one source, adding that the extension was agreed because lenders
were comfortable with the collateral backing the loans.
Bumi Resources Minerals is the group's metals unit.