JAKARTA (TheInsiderStories) – Indonesian power producer, PT Perusahaan Listrik Negara (PLN) announced is extending the expiration of the previously tender offers to purchase for cash any and all of the outstanding 2019 Notes, 2020 Notes, and 2037 Notes (together with the 2019 Notes and the 2020 Notes).
In April, 26, PLN announced that it has commenced tender offers to purchase for cash any and all of the outstanding as much as US$2.5 billion. The expiration time applicable to each tender offer, previously scheduled for 5:00 p.m., New York time, on May 9, 2018, have been extended, with respect to each Tender Offer, to 5:00 p.m., New York time, on May 16, 2018, unless further extended or earlier terminated.
This is also the deadline for note-holders who have tendered notes in the tender offers to be able to validly withdraw such notes. For the avoidance of doubt, the results announcement date is currently expected to be on May 17, 2018 (the business day following the expiration date).
The guaranteed delivery date has been extended, with respect to each Tender Offer, to 5:00 p.m., New York time, on May 18, 2018 (the second business day after the expiration date), and the payment date is currently expected to be on May 21, 2018 (the third business day following the expiration date).
Previously the company offered, holders of notes will receive in cash for validly tendered and accepted for purchase by the company, $1,066.75 per $1,000 principal amount for the 2019 Notes, $1,074.00 per $1,000 principal amount for the 2020 Notes, and $1,295.00 per $1,000 principal amount for the 2037 Notes.
It said, the note-holders who have already tendered their notes and do not wish to withdraw and to re-tender their notes or take any other action as a result of the extension of the expiration applicable to each tender offer.
Each tender offer for a given series is subject to certain conditions as described in the Tender Offer Memorandum. The Company may, in its sole discretion, terminate, extend or amend any of the Tender Offer.
As of 5:00 p.m., New York time, on May 9, approximately $1,73 billion aggregate principal amount of the notes (including approximately 606.34 million aggregate principal amount of the 2019 Notes, $905.06 million aggregate principal amount of the 2020 Notes, and $217. 10 million aggregate principal amount of the 2037 Notes) was validly tendered (and not validly withdrawn) in the tender offers.
In addition, approximately $2.11 million aggregate principal amount of the 2037 notes was tendered pursuant to the Guaranteed Delivery Procedures.
Last year, PLN was heavily criticized for inefficiency and accumulating debts totaling $22 billion. These debts raised concerns on the part of Minister of Finance Sri Mulyani Indrawati about company debts and interest payable over the next 30 years exceeding cash-raising capability of the state-owned enterprise.
Many stakeholders warned that over the long run PLN may suffer cash flow problems because of the mandatory 35,000 MW mega power plant. PLN will need around $10 billion at least for the construction of the 10,000 MW plants and for transmission.
Even so, the CEO Sofyan Basir claimed PLN’S debts were still manageable. Around Rp100 trillion of debt was owed to local creditors, $1.1 billion to the World Bank and Asian Development Bank and the remainder of around Rp186 billion to various foreign creditors.
The Company has engaged Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Limited, Mandiri Securities Pte. Ltd. and Standard Chartered Bank to serve as dealer managers for the Tender Offers.
The state-owned electric utility company and is wholly-owned by the Government of the Republic of Indonesia. The company provides most of the public electricity and electricity infrastructure in Indonesia, including construction of power plants, power generation, transmission, distribution and retail sales of electricity.
It is the largest electricity producer in Indonesia, and as of Dec. 31, 2017 had a power generation capacity of approximately 42,656 megawatts (MW)–excluding power generation capacities of independent power producers with which it has entered into power purchase agreements and energy sales contracts–that accounted for over 76 percent of the total installed generation capacity in Indonesia of 55,926 MW and served approximately 68.1 million customers.
Majapahit Holding B.V., the issuer of the 2019 Notes, 2020 Notes and 2037 Notes, was incorporated as a private company with limited liability under the laws of the Netherlands and has its corporate seat in Amsterdam, The Netherlands.