Indika gives results of tender offers for 2024, 2025 notes

By Marisa Wong

Los Angeles, July 8 – Indika Energy Capital III Pte. Ltd. and Indika Energy Capital IV Pte. Ltd. announced on Friday the results of their modified Dutch auction cash tender offers for two series of notes guaranteed by Indonesia’s PT Indika Energy Tbk. The offers began on June 8 and expired at 11:59 p.m. ET on July 7.

Capital III offered to buy up to $200 million aggregate purchase price of its $750 million outstanding 5 7/8% senior notes due 2024 (ISINs: US45569FAA21, USY39694AA51), and Capital IV offered to buy up to $50 million aggregate purchase price of its $675 million outstanding 8¼% senior notes due 2025 (ISINs: US45569GAA04, USY39690AA30).

2024 tender results

As of the expiration deadline, $183,967,000 of the 2024 notes had been tendered for an aggregate purchase price of $184,974,252.50.

Capital III determined the clearing price and total consideration for the 2024 notes to be $1,007.50.

The issuer will accept for purchase all of the tendered 2024 notes without any proration.

After settlement of the tender offer and the planned cancellation of $28,637,000 of 2024 notes previously repurchased by the parent guarantor through open market buybacks, $362,396,000, or 63.03%, of the 2024 notes will remain outstanding.

As previously noted, in the event the 2024 offer is undersubscribed at the expiration deadline, the company will increase the 2025 offer maximum amount by the amount of the 2024 offer shortfall.

The 2024 offer shortfall amounted to $15,025,747.50, and the company will apply that amount to the 2025 tender offer.

2025 tender results

As previously reported, the aggregate purchase price for the 2025 notes that had been tendered by the early tender deadline was $226.93 million.

According to Friday’s announcement, no additional 2025 notes had been tendered after the early deadline, and the aggregate purchase price for the tendered 2025 notes remains at $226.93 million,

Because the 2025 offer had been oversubscribed at the early deadline, Capital IV already set the clearing price and total consideration for the 2025 offer at $1,002.50 per $1,000 of 2025 notes tendered by the early deadline.

With the 2025 tender offer cap increased by the 2024 offer shortfall, Capital IV will accept for purchase $56,571,000 of the 2025 notes for an aggregate purchase price of $56,712.427.50, without proration.

After settlement of the tender offer and the planned cancellation of $19.55 million of 2025 notes previously repurchased by the parent guarantor, $598,879,000 of the 2025 notes will remain outstanding.

Details

Noteholders could submit either competitive tender instructions or non-competitive tender instructions.

For the 2024 notes, the accepted bid price range was between $977.50 to $1,007.50.

For the 2025 notes, the accepted bid price range was between $1,002.50 to $1,025.

Both offers included a $50 early tender premium (per $1,000 principal amount) in the total considerations that will not be paid to noteholders who tendered after the early deadline.

Accrued interest will be paid in both cases.

Settlement is planned for July 14.

The dealer managers are Mandiri Securities Pte. Ltd. (+65 6589 3880, msliability.mgmt@mandirisek.co.id) and Standard Chartered Bank (Singapore) Ltd. (+44 20 7885 5739, +852 3983 8658, +65 6557 8286, liability_management@sc.com).

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, 203 609-4910, indika@investor.morrowsodali.com) is the information and tender agent.

Indika is an energy company based in Jakarta, Indonesia.

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