Press Metal to accept tenders for $173.11 million of 4.8% notes

By Sarah Lizee

Olympia, Wash., Aug. 7 – Malaysia’s Press Metal Labuan Ltd. announced the results of the capped tender offer on Tuesday for up to $200 million of its 4.8% senior notes due 2022 (ISIN: XS1704655635), according to a market source.

By the expiration time, 11 a.m. ET on Aug. 6, holders of $173,113,000, or 43.28%, of the notes tendered their notes under the offer. The company said it will accept all tendered notes for purchase.

The purchase price was set at par.

No scaling factor will be applied.

As previously reported, noteholders could either deliver a non-competitive tender instruction that either did not specify a purchase price or specified a purchase price that is less than or equal to the minimum purchase price of 95.

To deliver a competitive tender instruction for the modified Dutch auction, noteholders had to deliver a consent instruction that is between 95 and 100, and specify a purchase price greater than the minimum in increments of 0.5.

Tender instructions also had to state the principal amount of notes that is the subject of the tender instruction, with a minimum denomination of $200,000 and multiples of $1,000 in excess of the minimum amount.

Had the non-competitive tender been oversubscribed, the offer would have been prorated. In the case of oversubscription in the non-competitive tender, the purchase price would have been 95 and no competitive tenders would have been accepted.

If the entire offer had been oversubscribed, but the non-competitive portion did not exceed the cap, the non-competitive tenders would have been paid and the competitive tenders would have been prorated.

The company conducted the tender offer to actively manage its balance sheet and optimize its cost of financing.

The notes are guaranteed by parent Press Metal Aluminium Holdings Bhd.

There are currently $400 million of the notes, which were issued on Oct. 30, 2017, outstanding.

The pricing was set on Aug. 7.

Settlement is expected for Aug. 17.

D.F. King Ltd. is the information and tender agent (+44 20 7920 9700, +852 3953 7208, pressmetal@dfkingltd.com, https://sites.dfkingltd.com/pressmetal).

J.P. Morgan Securities plc (+65 6882 1802/1823, DCM_SEA@jpmorgan.com) and Standard Chartered Bank (Singapore) Ltd. (+65 6596 8807, liability_management@sc.com) are the dealer managers.

Press Metal manufactures and markets aluminum products. The company is based in Shah Alam, Malaysia.

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