Garuda Indonesia launches capped tender offer for 2031 notes, sukuk

By Marisa Wong

Los Angeles, Dec. 1 – PT Garuda Indonesia (Persero) Tbk announced separate invitations to holders of its outstanding 6½% notes due 2031 (ISIN: XS2568752682) and the sukuk limited trust certificates due 2031 (ISIN: XS2572292626) issued by Garuda Indonesia Global Sukuk Ltd. to tender their securities for purchase for cash, according to a notice.

The company has set $50 million as the maximum total purchase consideration for securities tendered and accepted for purchase across both series, excluding interest.

Pricing will be determined through a separate unmodified Dutch auction for each series.

Currently, the outstanding principal amount is $536,452,843.87 for the Regulation S notes and $78,019,580 for the certificates. The outstanding amount of Regulation S notes includes accrued interest that has been capitalized and added to the outstanding principal amount; a clearing system pool factor of 105.5367% currently applies to the outstanding amount. The outstanding amount of certificates does not include any accrued PIK periodic distribution amount, which is $4,242,315 for the return accumulation periods ended on March 29, 2023, June 29 and Sept. 29.

The purchase price for the Regulation S notes will be based on the outstanding principal amount tendered after the clearing system pool factor, and the purchase price for the certificates will be based on the outstanding face amount of the certificates tendered without applying any clearing system pool factor.

The company will also pay accrued interest or accrued distributions, as applicable.

Tenders may be subject to proration.

Tender instructions will be irrevocable except in limited circumstances.

The offers expire at 11 a.m. ET on Dec. 15.

Settlement is expected to take place on or before Dec. 21.

Morrow Sodali Ltd. is the information and tender agent (+852 2319 4130, +44 20 4513 6933; garuda@investor.morrowsodali.com; https://projects.morrowsodali.com/garuda).

The issuer is an airline based in Tangerang, Indonesia.

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