Indonesia’s Modernland gives results of 2025, 2027 notes tender offers

By Marisa Wong

Los Angeles, March 28 – PT Modernland Realty Tbk. announced on Monday the results of the two tender offers by subsidiaries JGC Ventures Pte. Ltd. and Modernland Overseas Pte. Ltd. that began on March 14.

2025 notes offer

JGC offered to purchase its $179,156,672 outstanding amended and restated guaranteed senior notes due June 30, 2025 (ISIN: XS1871087133) and $194,086 outstanding guaranteed senior PIK toggle notes due June 30, 2025 (ISIN: XS2421278115).

A total of $136,902,505 of 2025 notes were tendered, and JGC has decided to accept $48,431,438 of the 2025 notes at a clearing price of $0.53 for a total purchase price of $25,668,662.14.

After settlement, $130,725,234, or about 73% of the original principal amount, of the 2025 notes will remain outstanding.

The company noted that no 2025 PIK notes were tendered or accepted for purchase, because the minimum denomination for tenders was $200,000. As a result, all $194,086 of the 2025 PIK notes will continue to remain outstanding.

2027 notes offer

Modernland Overseas was offering to purchase its $268,480,678 outstanding amended and restated guaranteed senior notes due April 30, 2027 (ISIN: XS1592893546).

A total of $155,427,965 of 2027 notes were tendered, and Modernland Overseas has decided to accept $54,544,584 of the 2027 notes at a clearing price of $0.47 for a total purchase price of $25,635,954.48.

After settlement, $213,936,094, or 79.7% of the original principal amount, of the 2027 notes will remain outstanding.

Details

Pricing for each tender offer was determined under a reverse Dutch auction.

The bid range for the two 2025 series was between $0.53 and $0.60 per $1.00 principal amount of notes.

The bid range for the 2027 series was between $0.47 and $0.55 per $1.00 principal amount of notes.

Each offer expired at noon ET on March 25.

Settlement will be on April 14.

For each offer, the issuer accepted for purchase: first, all notes tendered under non-competitive tender instructions in full; second, all notes tendered under competitive tender instructions that specified a purchase price less than the clearing price in full; and third, all notes tendered under competitive tender instructions that specified a purchase price equal to the relevant clearing price, in each case, on a pro rata basis such that the aggregate principal amount of all notes accepted for purchase is no greater than the acceptance amount.

The dealer manager for the offers is Standard Chartered Bank (Singapore) Ltd. (fax +65 6535 1931, liability_management@sc.com, attn.: liability management).

The information and tender agent is Lucid Issuer Services Ltd. (modernland@lucid-is.com; https://deals.lucid-is.com/modernland; in London +44 20 7704 0880, attn.: Owen Morris; in Hong Kong +852 2281 0114, attn.: Mu-yen Lo).

Modernland Realty is a real estate development and leasing company based in Jakarta.

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