COUNTRY REPORT INDONESIAtook 11%, and the rest went to private
banks and others.
HSBC was global coordinator and joint
bookrunner with DBS Bank, Mizuho Securities,
MUFG and OCBC Bank.
Federal International Finance is a
frequent issuer in the domestic bond
market. Jardine Matheson Holdings is its
ultimate parent.
› BUMI BACK FOR MORE
Indonesian property developer BUMI
SERPONG DAMAI on April 30 reopened the
7.25% US dollar notes due April 26 2021 it
priced earlier in the month for a US$50m
tap, bringing the total outstanding to
US$300m.
The company sold the additional bonds
at 100.125, or a yield of 7.201%, in line with
final guidance of 100.000-100.125.
Bumi Serpong Damai is rated Ba3
(positive) by Moody’s and BB– (stable) by
Fitch. The Reg S senior unsecured three-
year non-call two bonds are rated Ba3/BB
(Moody’s/Fitch).
Global Prime Capital is the issuer while
Bumi Serpong Damai and certain of its
subsidiaries are guarantors.
Proceeds from the tap will be used for
debt refinancing, capital expenditure,
working capital and general corporate
purposes.
Citigroup, UBS, BNP Paribas and Credit Suisse
were joint bookrunners.
SYNDICATED LOANS
› ASTRA SEDAYA FINANCE IS BACKASTRA SEDAYA FINANCE has launched a US$150m
three-year loan into general syndication,
returning to the loan markets after almost
a year.
Citigroup, DBS Bank, OCBC Bank, Sumitomo
Mitsui Banking Corp and Taipei Fubon
Commercial Bank are the mandated lead
arrangers and bookrunners of the loan,
which has an average life of 1.625 years.
The borrowing pays interest margins of
80bp (offshore) and 90bp (onshore) over
Libor.
Banks are invited to join as lead
arrangers with tickets of US$20m–$29m
for upfront fees of 35bp, translating to top-
level all-in pricing of 101.54bp (offshore)
and 111.54bp (onshore). Arrangers
committing US$10m–$19m receive 30bp
in fees for all-ins of 98.46bp (offshore) and
108.46bp (onshore).
Roadshows will be held in Singapore on
Monday and Taipei on Wednesday. The
deadline for responses is June 1.
Astra Sedaya Finance’s previous visit
to the market was in June last year for a
US$300m three-year loan that was more
than tripled from an original US$90m
target. Citigroup, CTBC Bank and HSBC
were the MLABs of the financing, which
was marketed to Taiwanese lenders only
and offered a top-level all-in pricing of124.6bp based on an interest margin of
100bp over Libor and an average life of
1.625 years.
Astra Sedaya Finance is the auto finance
unit of Astra International.RESTRUCTURING
› CP PRIMA TO RESTRUCTURE AGAINIndonesian aquaculture company CENTRAL
PROTEINA PRIMA said that holders of 97.39%
of its US$325m step-up notes had voted
in favour of a scheme of arrangement to
restructure the bonds for the second time.
CP Prima issued US$325m five-year 11%
senior secured bonds in 2007 through Blue
Ocean Resources, but was badly affected
by a virus at its shrimp farms beginning
in 2009. Bondholders with more than half
of the notes agreed in February 2010 to
implement a standstill agreement following
a missed coupon payment in December
2009.
The bonds were then restructured and
the new notes were issued in 2013 with
a final maturity of December 2020 and a
step-up coupon. The bonds paid a coupon
of 2% for the period ended December 2014,
4% for the next three years, 6% for the
following year, and 8% for the remaining
two years.
The company had the option to defer
interest payments if it fell short of EbitdaMNC Investama removes default risk
Bonds Indonesian company completes exchange and raises new money to pay off 2018sIndonesian media holding company MNC
INVESTAMA has completed an exchange offer
and raised new money to avoid defaulting on
a debt obligation due next month, but had to
sweeten terms to entice investors amid weak
market conditions.
The company, also known as BHIT,
will now be able to repay its US$365m
5.875% senior notes due May 16 2018, after
exchanging some of them into a new bond
and raising additional money.
BHIT received valid instructions to
exchange US$186m in aggregate principal
amount of the existing notes for US$174.6m
in aggregate principal amount of new notes.
Separately, US$115m of the 2018s will be
converted into subordinated debt, leaving
US$64m of the 2018s still outstanding. The
remainder will be paid off with proceeds from
the concurrent new money offering and a
US$30m advance on a shareholder loan.The exchange amount was lower than the
issuer’s target of US$250m. BHIT decided
to waive the condition to the exchange offer
requiring that no less than US$225m in
principal amount of the existing notes be
submitted for exchange.
The new three-year non-call one notes
were priced at par to yield 9%, or 100bp
wider than the 8% minimum yield initially
announced. BHIT also raised US$56.4m in
new money from additional notes, raising
the total aggregate of new bonds to
US$231m.
S&P has assigned a preliminary rating
of B– to the new notes, while Moody’s has
assigned a provisional Caa1. Moody’s said it
expects to upgrade the company rating to B3
on completion of the deal but keep the notes
at Caa1.
“If the exchange offer is completed as
outlined, it will constitute a distressedexchange, which is an event of default under
Moody’s definition of default,” Moody’s senior
credit officer Annalisa DiChiara said in a
rating note prior to the exchange.
MNC Investama had warned that if the
exchange offer did not go through, the
US$115m debt conversion would not happen,
nor would it receive a US$30m advance on a
shareholder loan intended to fund the cash
portion of the bond exchange offer.
The company said last December that
it had planned to repay the May 2018s by
selling coal assets and raising cash from
shareholders.
The notes were issued in 2013 through
Ottawa Holdings.
Deutsche Bank, ING and Standard
Chartered were joint bookrunners on the new
issue and dealer managers on the exchange
offer.
FRANCES YOON