Straits Asia to borrow $380 million for debt payment

Straits Asia Resources Ltd., is in talks with banks for a potential $380 million worth of five-year loan intended for maturing debt repayment.

According to Bloomberg, the Singapore-based coal miner is in advanced and private talks with Bangkok Bank Pcl, Krung Thai Bank Pcl, Siam Commercial Bank Pcl, and Standard Chartered Plc. The five-year loan will be a club facility, said two undisclosed source persons.

Chief Financial Officer Graeme Tivey has previously said that the company, controlled by Thailand’s PTT Pcl, is seeking to borrow approximately $250 million to repay debt. Data compiled by Bloomberg reveal that Straits Asia has S$417 million ($300 million) of loans due to mature in 2010.