JAKARTA (TheInsiderStories) – Indonesian energy producer, PT Pertamina announced that it has commenced tender offers to purchase for cash any and all of the outstanding 2021 Notes and 2022 Notes (together with the 2021 Notes), said the company today.
Previously, the state-owned company announced to offer global medium term notes to investors in Asia, London and the United States on Oct. 22. The funds from the debt issuance under the company’s US$10 billion global medium term note program will use to finance the tender offer program.
Pertamina said in a written statement said aimed to use the proceeds to finance the tender offer for its outstanding $1 billion’s 5.25 percent senior notes due 2021 and $1.25 billion’s 4.875 percent senior notes due 2022. The remaining proceeds will be used for capital expenditures and general corporate purposes.
Moody’s Investors Service has assigned a Baa2 (stable) rating to the notes, S&P BBB- and BBB by Fitch Rating. The company has engaged BNP Paribas, Deutsche Bank AG, London Branch, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, Standard Chartered Bank and Mandiri Securities Pte Ltd as joint lead managers and book-runners for the notes.
Pertamina explained, the tender offers are being made pursuant to a Tender Offer Memorandum, dated Oct. 19. Capitalized terms used but not defined herein have the meanings assigned to them in the memorandum.
The tender offers will expire at 5:00 p.m., New York time, on Oct. 25, 2018, unless extended or earlier terminated as described in the Tender Offer Memorandum.
Holders of notes will receive in cash for notes validly tendered and accepted for purchase by the company, $1,034.50 per US$1,000 principal amount for the 2021 notes and $1,022.50 per $1,000 principal amount for the 2022 notes, plus accrued and unpaid interest on such notes in accordance with the terms of the indentures governing the respective Series of the notes to, but excluding, the payment date. Pertamina expects the payment date to be Oct. 31.
The tender offer for each series is conditioned on the company successfully obtaining funds from the new notes issuance. If the new note issuance is not completed, or is completed but does not generate sufficient funds as aforesaid, the financing condition for each tender offer will not be satisfied and either, or both, the tender offers may be terminated.
The following table shows the Notes included in the Tender Offers as well as the principal amount outstanding and the Consideration with respect to each Series of Notes:
Description of Notes
Nominal Amount Outstanding
Regulation S: USY7138AAA89
Rule 144A: US69369EAA73
Regulation S: Y7138A AA8
Rule 144A: 69369E AA7
5.25% Senior Notes due 2021 (the “2021 Notes“)
US$1,034.50 per US$1,000 principal amount
Regulation S: USY7138AAC46
Rule 144A: US69369EAC30
Regulation S: Y7138A AC4
Rule 144A: 69369E AC3
4.875% Senior Notes due 2022 (the “2022 Notes“)
US$1,022.50 per US$1,000 principal amount