INDONESIAN coal miner Geo Energy Resources has repurchased US$16.1 million in principal amount of the 8 per cent senior notes issued by its wholly-owned unit Geo Coal International, it said on Monday.
The notes were repurchased in a series of open-market transactions from Dec 5 to Dec 20 for a sum of US$10.7 million, including accrued interests. The repurchased notes will be cancelled, reducing the aggregate principal amount of notes outstanding from US$300 million to US$283.9 million. The notes were issued in October 2017 and are due in 2022.
Geo Energy said:"As announced on Aug 14, 2019, the company will explore buying back part of its notes if it represents value creation for the group. The company believes the notes are undervalued."The repurchase of the notes is an efficient way to improve shareholders' value and return cash to noteholders of the notes, it said.