Thursday, April 21, 2011

Indika offer yield 6.875%-7.375% for US$250 million bonds

PT Indika Energy Tbk, the Indonesian mining and services company, offer dollar bonds due 2018 to investors at a yield around the 6.875% to 7.375% area.

The company plans to exchange up to US$165 million of its US$250 million of 8.5% notes due 2012 for new notes due 2018, according to an April 11 Singapore stock exchange statement.
Indika Energy also made a consent solicitation for all its outstanding US$230 million of 9.75% notes due 2016, the statement said.

Indika had IDR3.68 trilion of cash (excluding restricted cash balances of IDR590 billion) as of 31 December 2010. The company expects to realise a sizable amount of cash from re-floating PT Petrosea Tbk, a mining contractor, during 2011.

In addition, the company expects to raise up to US$135 million from the proposed 2018 notes on top of its offer to exchange the proposed notes with the existing US$ notes falling due in 2012. These sources of liquidity should comfortably cover Indika's capex and debt maturities over the next 12 to 18 months, including the short-term facilities of US$180 million for the MBSS acquisition maturing in April 2012.

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