Indonesia's Indosat wraps tender offers for 7¾%, 7 1/8% notes, gets needed funding for settlement

By Susanna Moon

Chicago, Aug. 2 - PT Indosat Tbk., Indosat Finance Co. BV and Indosat International Finance Co. BV said they completed the offers to purchase for cash Indosat Finance's outstanding $300 million principal amount of 7¾% guaranteed notes due 2010 and Indosat International's $250 million principal amount of 7 1/8% guaranteed notes due 2012.

Investors tendered $167,874,000 of the 7¾% notes and $56,035,000 of the 7 1/8% notes.

Indosat Finance also said it received consents for $186.37 million principal amount of its 7¾% notes by July 30, the consent solicitation deadline.

Following settlement, there will be $66,873,000, or 22.3%, of 7¾% notes outstanding and $53,375,000, or 21.4%, of the 7 1/8% notes outstanding.

Indosat said it expects to settle tenders and consent payments by Aug. 3.

The company also noted that its affiliate Indosat Palapa Co. BV has completed an issuance of guaranteed senior notes due 2020 in a private placement under Rule 144A.

The completion of a notes offering with proceeds sufficient to pay for the offers and consent bid was a condition to completing the consent solicitation.

Indosat previously extended the deadline to coordinate settlement of the offers with the closing of the financing needed to fund the purchase of the notes.

As already noted, Indosat Finance was soliciting consents to some proposed amendments to the indenture for the 7¾% notes and to the release of Indosat International as a guarantor for the notes.

For each $1,000 principal amount, the company will pay $1,021.875 for the 7¾% notes and $1,038.125 for the 7 1/8% notes.

These amounts include an early tender premium of $2.00 and a consent payment of $0.50 for each 7¾% note tendered by the early tender date and an early tender premium of $2.50 for each 7 1/8% note tendered by the early tender date.

The early tender date was 5 p.m. ET on July 21, and the expiration date of the offers was midnight ET on July 30.

Holders will also receive accrued interest up to but excluding the settlement date.

The joint dealer managers and solicitation agents were Citigroup Global Markets Ltd., DBS Bank Ltd., Deutsche Bank AG, Singapore Branch, Hongkong and Shanghai Banking Corp. Ltd. and Royal Bank of Scotland plc. The information and tender agent was D.F. King & Co., Inc. (888 628-9011, banks and brokers call collect at 212 269-5550).

Indosat is a Jakarta, Indonesia-based telecommunications provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.