By Paul A. Harris
St. Louis, Oct. 11 - Majapahit Holding BV, a financing subsidiary of Indonesia's state-owned electric utility PT Perusahaan Listrik Negara (PLN), priced $1 billion of notes (B1/BB-/Perfindo A) on Wednesday in what market sources are calling the biggest Indonesian high-yield transaction.
The company priced a $450 million tranche of 7¼% five-year notes at 99.382 to yield 7.4%, tighter than the 7½% to 7¾% price talk.
PLN also priced a $550 million of 7¾% 10-year notes at 98.976 to yield 7.9%, tighter than the 8% to 8¼% price talk.
UBS led the Rule 144A and Regulation S transaction.
According to market sources, the notes will come with a maintenance of sovereign ownership covenant and a negative pledge covenant, as well as debt incurrence limitation covenants, and are expected to be listed on the Singapore Stock Exchange.
PLN is a vertically integrated electricity 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.
The issuer has headquarters in Jakarta.
| Issuer: | Majapahit Holding BV (PT PLN)
|
| Total amount: | $1 billion
|
| Issue: | Notes
|
| Bookrunner: | UBS
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Perfindo: A
|
| Trade date: | Oct. 11
|
| Settlement date: | Oct. 16
|
| Distribution: | Rule 144A/Regulation S
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | Oct. 17, 2011
|
| Coupon: | 7¼%
|
| Price: | 99.382
|
| Yield: | 7.4%
|
| Spread to Treasuries: | 266 bps
|
| Spread to mid-swaps: | 216 bps
|
| Price talk: | 7½% to 7¾%
|
|
|
| 10-year notes
|
| Amount: | $550 million
|
| Maturity: | Oct. 17, 2016
|
| Coupon: | 7¾%
|
| Price: | 98.976
|
| Yield: | 7.9%
|
| Spread to Treasuries: | 313 bps
|
| Spread to mid-swaps: | 257 bps
|
| Price talk: | 8% to 8¼%
|
© 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.
