Indonesia's Star Energy Geothermal plans notes to fund tender offer

By Christine Van Dusen and Marisa Wong

Atlanta, March 12 - Indonesia's Star Energy Geothermal (Wayang Windu) Ltd. is planning to issue new notes as part of a tender offer, a market source said.

The company on Monday began a cash tender offer for any and all of its outstanding 11½% senior notes due 2015. As of Feb. 14, the outstanding principal amount of the notes is $337.5 million.

The company is also soliciting consents from holders of a majority in principal amount of the notes to proposed amendments to the indenture governing the notes. The amendments would shorten the redemption notice period to five days from 30 days.

The tender offer and consent solicitation are conditioned on the company receiving sufficient proceeds from the new notes to fund the tender offer, as well as on the execution of a supplemental indenture effecting the proposed amendments.

Barclays and DBS Bank Ltd. are the dealer managers and solicitation agents.

The Indonesian geothermal energy company originally issued $350 million of the 11½% notes.

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