Medco pays $150 million to settle tendered 2026, 2027 notes

By Marisa Wong

Los Angeles, June 3 – Indonesia’s PT Medco Energi Internasional Tbk. announced settlement of its April 28 offers to purchase notes from two series for an aggregate purchase price of up to $150 million.

The two series include the $650 million of 7 3/8% senior notes due 2026 issued by Medco Oak Tree Pte. Ltd. (Cusips: 58405FAA3, Y59505AA7) and the $650 million of 6 3/8% senior notes due 2027 issued by Medco Bell Pte. Ltd. (Cusips: 58406LAA9, Y56607AA5), both guaranteed by parent Medco Energi.

As announced on May 26, holders of $109,194,000 of the 2026 notes and $148.29 million of the 2027 notes had tendered their notes at or prior to the expiration deadline at 11:59 p.m. ET on May 25.

Because the tender offers were oversubscribed, the notes were accepted according to acceptance priority order.

Medco Oak Tree paid an aggregate of $108,744,000 early tender offer consideration for 2026 notes tendered by the early tender deadline at 5 p.m. ET on May 11 and an aggregate of $436,500 late tender offer consideration for the 2026 notes tendered after the early deadline.

Medco Bell paid an aggregate of $40,814,962.50 early tender offer consideration for early tendered 2027 notes accepted for purchase. The issuer did not accept any 2027 notes tendered after the early deadline.

As previously stated, because the 2026 notes have priority in acceptance over the 2027 notes, the 2027 notes were accepted on a pro rata basis so that the aggregate purchase price does not exceed $150 million. Specifically, the issuer accepted the early tendered 2027 notes using a proration factor of 33.2999%.

The total consideration per $1,000 principal amount was $1,000 for the early tendered 2026 notes and $942.50 for the early tendered 2027 notes, in each case inclusive of a $30 early tender premium. The company paid $970 for each $1,000 of 2026 notes tendered after the early deadline.

In addition to the early tender offer consideration and late tender offer consideration, Medco Oak Tree paid $402,652.95 of accrued interest for the 2026 notes, and Medco Bell paid $935,568.44 of accrued interest for the 2027 notes.

After settlement on June 2, $539,306,000 principal amount of the 2026 notes and $601,695,000 principal amount of the 2027 notes remain outstanding.

Morgan Stanley Asia (Singapore) Pte. (+852 6901 0116, +852 6323 8423, 212 761-9994, 212 761-3459, +65 6834 8068 or liabilitymanagement_gp@morganstanley.com) and Standard Chartered Bank (Singapore) Ltd. (+44 20 7885 5739, +852 3983 8658, +65 6557 8286, or liability_management@sc.com) are joint dealer managers for the tender offer.

Morrow Sodali Ltd. (+852 2319 4130, +44 20 4513 6933, 203 609-4910, medco@investor.morrowsodali.com) is the information and tender agent.

MedcoEnergi is an oil and gas company based in Jakarta, Indonesia.

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