Indonesian utility PLN talks $1 billion notes: five-year notes 7½%-7¾%, 10-year notes 8%-8¼%

By Paul A. Harris

St. Louis, Oct. 10 - Majapahit Holding BV, a financing subsidiary of Indonesia's state-owned electric utility PT Perusahaan Listrik Negara (PLN), introduced price talk and a new structure on its $1 billion offering of notes (expected B1/confirmed BB-) on Tuesday, according to a market source.

The company has talked its tranche of 10-year notes at 8% to 8¼%.

Meanwhile PLN has introduced a tranche of five-year notes, which it has talked at 7½% to 7¾%.

The roadshow for the Rule 144A and Regulation S note offering is scheduled to conclude on Thursday in New York.

UBS is leading the offering.

The notes will come with a maintenance of sovereign ownership covenant and a negative pledge covenant, as well as debt incurrence limitation covenants.

The notes are expected to be listed on the Singapore Stock Exchange.

PLN is a vertically integrated electric utility with a generation capacity of more than 22,000 megawatts. It is a monopoly operator of transmission and distribution networks of more than 31,000 kilometers and 580,000 kilometers, respectively. It is the country's largest electricity producer, with capacity accounting for 85% of the market.

PLN has headquarters in Jakarta, Indonesia.

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