Sunday, January 17, 2010

Garuda buys back US$25 million bonds

PT Garuda Indonesia could buy back US$25 million bonds or 56 percent of the outstanding US$45 million so Garuda had 44 percent discounted price.
President Director of Garuda Emirsyah Satar said the acquisition could reduce the debt of Garuda by US$45 million.
“Garuda will pay the preferred bidder by January 21, 2010 and this means that after payment, the bought bonds will lose their value,” he said in press release last week.
The bond buyback is the follow up of floating rate notes (FRN) restructuring process maturing in 2007. the current notes now stand at US$115.68 million and IDR146.514 billion. In the restructuring process, 99.2 percent of the bond holders approved the restructuring program.
Emirsyah said the bond restructuring process which is extended the maturity up to January 2018 has increased Garuda balance sheet.
Garuda now plans to have similar offer to the lease financing for aircraft company up to US$11 million purchase value. In the notes restructuring here, Garuda is assisted by the Rothschild & Son Limited as the restructuring advisor K&L Gates LLP as the international legal advisor, and Wiriadinata & Saleh as the Indonesian legal advisor.
Garuda has got approval from the bond holders in the meeting held in Singapore to restructure US$305.27 million and IDR366.28 billion FRN.
Emirsyah said the new agreement with the bond holders is finalized after the accomplishment of FRN restructuring by January 21. He added there is change of deal in the new agreement such as maturity extension up to January 2018.
Besides, the bond coupon change of Garuda into the London inter bank offered rate (Libor) 6 months plus premium 1.75 percent paid annually. The rupiah bond coupon is based on 6 months deposit rate plus premium 1.75 percent paid annually.

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