By Rebecca Melvin
New York, Nov. 9 – PT Indonesia Asahan Aluminium (Persero) priced $4 billion of senior notes in four tranches due 2021, 2023, 2028 and 2048 (Baa2//BBB-), according to a syndicate source on Friday.
Joint bookrunners of the Rule 144A and Regulation S notes were BNP Paribas, Citigroup and MUFG (joint global coordinators) along with CIMB, Maybank, SMBC and Standard Chartered Bank.
The $1 billion tranche of 5.23% three-year notes priced at 99.263 to yield 5˝%, or a yield spread of U.S. Treasuries plus 247.1 basis points.
The $1.25 billion tranche of 5.71% five-year notes priced at 98.763 to yield 6%, or a spread of Treasuries plus 291.9 bps.
The $1 billion tranche of 6.53% 10-year notes priced at 97.534 to yield 6 7/8%, or a spread of U.S. Treasuries plus 363.6 bps.
And the $750 million tranche of 6.757% 30-year notes priced at 92.575 to yield 7 3/8%, or a spread of Treasuries plus 393.3 bps.
There is a change-of-control put at 101% if the government of Indonesia ceases to directly or indirectly own and control at least 75% of the company’s shares. There is also a put in the event of default if the company ceases to own at least 51% of shares.
Proceeds are earmarked to buy shares in PT Freeport Indonesia under a plan to acquire a direct and indirect majority stake in PTFI, and/or refinance acquisition debt, or to fund the special mandatory redemption.
Batubara, Indonesia-based Asahan Aluminium, known as Inalum, is a state-owned aluminum smelter.
| Issuer: | PT Indonesia Asahan Aluminium (Persero)
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Joint bookrunners: | BNP Paribas, Citigroup and MUFG (joint global coordinators) along with CIMB, Maybank, SMBC and Standard Chartered Bank
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2021 bonds
|
| Amount: | $1 billion
|
| Maturity: | Nov. 15, 2021
|
| Coupon: | 5.23%
|
| Price: | 99.263
|
| Yield: | 5˝%
|
| Spread: | 247.1 bps over U.S. Treasuries
|
|
|
| 2023 bonds
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 5.71%
|
| Price: | 98.763
|
| Yield: | 6%
|
| Spread: | 291.9 bps over U.S. Treasuries
|
|
|
| 2028 bonds
|
| Amount: | $1 billion
|
| Maturity: | Nov. 15, 2028
|
| Coupon: | 6.53%
|
| Price: | 97.534
|
| Yield: | 6 7/8%
|
| Spread: | 363.6 bps over U.S. Treasuries
|
|
|
| 2048 bonds
|
| Amount: | $750 million
|
| Maturity: | Nov. 15, 2048
|
| Coupon: | 6.757%
|
| Price: | 92.575
|
| Yield: | 7 3/8%
|
| Spread: | 393.3 bps over U.S. Treasuries
|
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