BUMA Priced a USD 350 Million 5-Year Senior Notes at 7.75% Coupon on The Back of Over USD 2.2 Billion Order Book

PT Delta Dunia Makmur Tbk. (the "Company") is pleased to announce that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA") priced a USD350 million 5-year (noncallable 3-year) Senior Notes (“Senior Notes”), following a successful bookbuilding on February 6, 2017, that garnered in excess of USD2.2 billion order from 185 accounts, achieving an oversubion ratio of 6.3x (the “Transaction”). The US-Dollar denominated Senior Notes will bear fixed interest of 7.75% p.a., with interest payable semi-annually in arrears. In January 2017, the Company and BUMA concluded a roadshow for the Transaction, which included several countries in Asia, Europe and the United States in compliance with Rule 144A and Regulation S under the US Securities Act. BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are the Joint Bookrunners.

The Transaction represents the BUMA’s landmark return to the international bond markets since 2009, achieving a coupon rate that is significantly tighter than BUMA’s 2009 Senior Secured Notes 11.75% coupon, and is the first coal sector bond offering from Indonesia since January 2013. Moody’s Investors Service, Inc. has assigned a rating of Ba3 stable to BUMA whilst Fitch Ratings, Ltd has assigned a rating of BB- stable. The Notes are expected to be rated Ba3 and BB- from the two agencies respectively.

On February 7, 2017, BUMA has also signed a 4-year USD100 million Term and Revolving Facilities Agreement with The Bank of Tokyo-Mitsubishi UFJ, consisting of (i) USD50 million term loan facility, and (ii) USD50 million revolving facility, with interest rate LIBOR + 3% p.a. (the “BTMU Facility”).

The net proceeds from the Senior Notes and the BTMU Facilities, supported by BUMA’s own cash, will be used to fully refinance BUMA’s existing indebtedness under loan facilities with a syndicated of lenders with SMBC as its Facility Agent (“SMBC Facility”), and with PT Bank CIMB Niaga Tbk (“CIMB Facility”). This exercise enables BUMA to extend its debt maturity profile, reduce amortization and improve cash flow, and allows for increased operational flexibility to support BUMA’s future growth.