Medco Energi tender offer oversubscribed, accepts 2025 notes only

By Marisa Wong

Los Angeles, Oct. 27 – Indonesia’s PT Medco Energi Internasional Tbk. announced results of its Oct. 11 capped tender offer for three senior notes, subject to an aggregate purchase price of $250 million. The notes are all guaranteed by Medco Energi as parent guarantor.

As of the early tender deadline at 5 a.m. ET on Oct. 24, holders had tendered the following notes, with the series listed in order of acceptance priority level:

• $343,925,000 of the $500 million outstanding 6¾% senior notes due 2025 issued by Medco Platinum Road Pte. Ltd. (Cusips: 58406HAA8, Y59505AA8) for $980 per $1,000 principal amount;

• $169,793,000 of the $539,306,000 outstanding of the original $650 million of 7 3/8% senior notes due 2026 issued by Medco Oak Tree Pte. Ltd. (Cusips: 58405FAA3, Y59501AA7) for $930 per $1,000 principal amount; and

• $128,107,000 of the $601,695,000 outstanding of the original $650 million of 6 3/8% senior notes due 2027 issued by Medco Bell Pte. Ltd. (Cusips: 58406LAA9, Y56607AA5) for $850 per $1,000 principal amount.

Because the aggregate principal amount of 2025 notes tendered by the early tender deadline exceeds the tender cap, the early tendered 2025 notes will be accepted on a prorated basis, and no 2025 notes tendered after the early deadline will be accepted for purchase, even though the offer is set to expire at 11:59 p.m. ET on Nov. 7.

As a result of the tender offer being oversubscribed, no 2026 notes or 2027 notes will be accepted for purchase.

The proration factor for the early tendered 2025 notes is 69.9844%, with the issuer expecting to accept for purchase $255,102,000 aggregate principal amount of the 2025 notes.

The tender consideration includes an early tender premium of $30 for each $1,000 principal amount.

The issuer will also pay accrued interest on the early tendered 2025 notes.

The expected settlement date is Nov. 8.

Funding for the offer will come from cash on hand and from a $150 million credit agreement entered into on Oct. 13.

The dealer managers are Australia and New Zealand Banking Group Ltd. (+65 6681 8969, dcmsg@anz.com), BNI Securities Pte. Ltd. (+65 6911 3752, +65 6911 3759, liabilitymgmt@bnisecurities.com.sg), BNP Paribas (+852 2108 5228, +44 20 7595 8668, dl.asia.syndicate@asia.bnpparibas.com, liability.management@bnpparibas.com) or DBS Bank Ltd. (+65 6878 9821, liabilitymanagement@dbs.com).

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

Medco Energi is a Jakarta, Indonesia-based energy and natural resources company.

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