Sateri deal talk expected Tuesday, pricing later in week

By Paul Deckelman

New York, Oct. 31 - Guidance is expected out Tuesday on Sateri International Co. Ltd.'s planned $300 million two-part bond offering, high yield market sources said Monday. That deal is expected to price sometime in the middle to latter part of the week, via Credit Suisse First Boston and Merrill Lynch & Co.

The exact structure of the deal has apparently still not been finalized. The first tranche would consist of either five-year or seven-year non-callable bonds, while the second tranche would consist of perpetual bonds that would be callable after five years, with no step-up.

The bonds are being sold under Rule 144A and Regulation S, following a roadshow that began on Oct. 19 in Singapore and which included stops in Hong Kong, Los Angeles, Boston, New York, London, Zurich and Geneva.

Official guidance on the deal has not yet been issued, although it could come Tuesday.

Moody's Investors Service assigned a Ba3 rating, with a stable outlook, to the offering, while Standard & Poor's rated it at B+.

Sateri, an Indonesian-based producer of viscose fiber and pulp owned by the wealthy Tanoto family, plans to use the proceeds of the new offering to finance the expansion of its Bahia Pulp mill in Brazil.

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