Star Energy’s Notes Oversubscribed 11 Times | INSIDER EXCLUSIVE
(The Insider Stories) — Indonesia power producer PT Star Energy through it’s subsidiary Star Energy Geothermal (Wayang Windu) Ltd has priced a US$350mn 7-year Senior Secured Notes offering at 6.125%. Star Energy’s Chief Financial Officer Hendra S. Tan told The Insider Stories the notes garnered a 11 times oversubscribed orderbook. “Even in the tight competition with PT Bank Rakyat Indonesia and PT Alam Sutera that also offered dollar bonds the demand was very strong which gave the best pricing,” he said. Booking orders came from 79 investors during its one-week roadshow to Hong Kong, Singapore, London, New York, Boston and Los Angeles.
More Details :
Star Energy Geothermal (Wayang Windu) Limited (“SEG”) (B2/B+) priced a successful US$350mn 7-year Senior Secured Notes offering. This is SEG’s second USD bond transaction, after its inaugural bond issue in February 2010. Concurrent with this new issue, SEG has launched a tender and consent solicitation exercise for its existing 2015 bonds, with an early consent deadline on 22 March.
On 21 March, Star Energy Geothermal (Wayang Windu) Limited (“SEG”) (B2/B+) priced a successful US$350mn 7-year Senior Secured Notes offering. This is SEG’s second USD bond transaction, after its inaugural bond issue in February 2010. Concurrent with this new issue, SEG has launched a tender and consent solicitation exercise for its existing 2015 bonds, with an early consent deadline on 22 March.
SEG is an independent power producer located at Wayang Windu, West Java. It commenced operations in 2000, and owns and operates one of the largest geothermal power stations in Indonesia.
The key transaction terms and highlights are profiled below:
Summary Terms
Issuer : Star Energy Geothermal (Wayang Windu) Limited
Offering : US dollar-denominated Senior Secured Notes
Issue Ratings : B2 (Moody’s) / B+ (Fitch)
Size : US$350mn
Tenor : 7-years Non Call 4-years Format : Reg S / Rule 144A
Yield : 6.125%
Coupon : 6.125%
Price : 100%
Governing Law : New York Law
Listing : SGX-ST
Pricing Date : 21 March 2013
Issue Date : 28 March 2013 (T+5)
Maturity Date : 27 March 2020
Bookrunners : Barclays, DBS
Transaction Highlights
Highly successful global investor roadshow – SEG enjoyed strong investor support, booking 79 investor 1-1s during its one week roadshow to Hong Kong, Singapore, London, New York, Boston and Los Angeles.
Took advantage of a stable market window and strong investor demand to price its new issue – The scarcity value of Indonesian corporate paper resulted in significant investor demand for SEG’s transaction, which was launched on the back of a stable market window after the US Federal Reserve reiterated its commitment to asset-purchases in order to stimulate spending and borrowing.
Overcame heavy competing pipeline to achieve 11 times oversubscribed orderbook – SEG had to contend with four other Asian USD bond deals launched on the same day, including two other Indonesian issuers. After announcing its transaction at mid morning in Asia at an initial price guidance of 6.625% area, the orderbook grew swiftly to over US$3.0bn by London open. This strong investor demand enabled the bookrunners to tighten final price guidance to 6.250% area before finally pricing at 6.125% in the New York morning. SEG achieved a notable 50bps tightening from initial pricing guidance to final pricing. The final orderbook stood at US$4.0bn and comprised over 200 accounts, with heavy participation from high quality buy-and-hold investors.
Distribution Statistics
Asia 46%
Europe 33%
US 21%
Fund/Asset Managers 86%
Banks/Private Banks 8%
Insurance/Public Institutions 6%
