PT Indonesia Asahan Aluminium launches tender offers for notes due 2021, 2023

By Marisa Wong

Los Angeles, May 6 – PT Indonesia Asahan Aluminium (Persero) said it has launched tender offers to purchase for cash any and all of its $1 billion outstanding 5.23% notes due 2021 (Cusip: Y7140WAA6, 74445PAA0) and $1.25 billion outstanding 5.71% notes due 2023 (Cusip: Y7140WAB4, 74445PAB8).

The 2021 notes have priority in acceptance over the 2023 notes, according to a notice.

The offers will expire at 5 p.m. ET on May 12.

Tenders under guaranteed delivery procedures must be submitted by 5 p.m. ET on May 14.

The issuer is offering a consideration of $1,025 per $1,000 principal amount of 2021 notes and $1,045 per $1,000 principal amount of 2023 notes.

In addition, holders will receive accrued interest to but excluding the settlement date.

The company said it expects to announce the tender results on May 13. Settlement is slated for May 15.

The tender offers are part of the company’s plan to optimize its financing costs and actively manage its debt maturity profile. These plans also include a concurrent benchmark offering of dollar-denominated fixed-rate notes.

The company said it intends to retain at least $500 million of the proceeds from the Regulation S and Rule 144A sale to acquire shares in other mining companies and to refinance its other outstanding debt. The company will use the remaining funds from the new notes to pay the consideration and interest for the tendered notes accepted for purchase.

Tenders may be withdrawn at any time at or prior to the expiration time.

Each tender offer is not conditioned on the other offer. However, notes will be accepted for purchase based on the acceptance priority levels.

BNP Paribas (+44 20 7595 8668 or +65 6210 3321), Citigroup Global Markets Inc. (+44 20 7986 8969 / +852 2501 2552) and the Hongkong and Shanghai Banking Corp. Ltd. (+44 20 7992 6237, +852 2822 4100 or 212 525-5552) are dealer managers for the tender offers.

Morrow Sodali Ltd. (212 324-4934, +44 20 7355 0628 or +852 2158 8405; mindid@investor.morrowsodali.com) is tender and information agent.

The Jakarta-based issuer is a state-owned national mining company appointed by the Indonesian government as the holding company for Indonesia’s mining operators.

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