Indonesia’s Medco tender offer for 2026, 2027 notes oversubscribed

By Marisa Wong

Los Angeles, May 26 – Indonesia’s PT Medco Energi Internasional Tbk. announced the final results of its April 28 offers to purchase notes from two series for an aggregate purchase price of up to $150 million.

The two series include the $650 million of 7 3/8% senior notes due 2026 issued by Medco Oak Tree Pte. Ltd. (Cusips: 58405FAA3, Y59505AA7) and the $650 million of 6 3/8% senior notes due 2027 issued by Medco Bell Pte. Ltd. (Cusips: 58406LAA9, Y56607AA5), both guaranteed by parent Medco Energi.

Holders of $109,194,000 of the 2026 notes and $148.29 million of the 2027 notes had tendered their notes at or prior to the expiration deadline at 11:59 p.m. ET on May 25, according to a company announcement on Thursday.

Because the tender offers are oversubscribed, the notes are expected to be accepted according to acceptance priority order.

The issuer expects to accept for purchase all 2026 notes tendered by the early tender deadline at 5 p.m. ET on May 11 and also all 2026 notes tendered after the early deadline and before the expiration deadline.

Because the 2026 notes have priority in acceptance over the 2027 notes, the 2027 notes will be accepted on a pro rata basis so that the aggregate purchase price for notes accepted for purchase does not exceed $150 million. Specifically, the issuer will accept the early tendered 2027 notes using a proration factor of 33.2999%.

Because the tender offers are oversubscribed, the issuer will not accept any 2027 notes tendered after the early tender deadline.

The total consideration per $1,000 principal amount is $1,000 for the early tendered 2026 notes and $942.50 for the early tendered 2027 notes, in each case inclusive of a $30 early tender premium. The company will pay $970 for each $1,000 of 2026 notes tendered after the early deadline.

Holders will also receive accrued interest.

Settlement will be on June 2.

Morgan Stanley Asia (Singapore) Pte. (+852 6901 0116, +852 6323 8423, 212 761-9994, 212 761-3459, +65 6834 8068 or liabilitymanagement_gp@morganstanley.com) and Standard Chartered Bank (Singapore) Ltd. (+44 20 7885 5739, +852 3983 8658, +65 6557 8286, or liability_management@sc.com) are joint dealer managers for the tender offer.

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

MedcoEnergi is an oil and gas company based in Jakarta, Indonesia.

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