Gajah Tunggal begins capped tender offer for 8 3/8% notes due 2022

By William Gullotti

Buffalo, N.Y., June 9 – PT Gajah Tunggal Tbk. launched a capped cash tender offer for its $250 million outstanding 8 3/8% senior secured notes due 2022 (ISIN: XS1655090139), according to an announcement.

The company is offering to pay $1,020.9375 per $1,000 note, plus interest to the settlement date.

The offer will expire at 11 a.m. ET on June 18. The tender cap will be announced on the expiration date.

Because the offer is capped, tenders may be prorated.

Financing for the tender offer will come a new issue of notes (Caa1/B-) due 2026. The tender offer is subject to the successful completion of the issue of new notes in an amount up to at least $175 million.

Priority allocation for the new notes may be given to tendering noteholders.

The company is conducting the tender offer as a part of a refinancing plan funded in part by the issuance of the new notes.

Settlement is planned for June 24.

Potentially the company could choose to redeem all of the notes after the tender offer at par plus a premium and interest.

Dealer managers for the offer are Credit Suisse (Singapore) Ltd. (+65 6212 8226, +852 2101 7700, list.hkdcmsyndicate@credit-suisse.com) and Deutsche Bank AG, Singapore Branch (+65 6423 7959, +44 20 7545 9031, liability_management_sea@list.db.com).

D.F. King Ltd. (+44 20 7920 9700, +852 3953 7208, gt@dfkingltd.com, https://sites.dfkingltd.com/gt) is the information and tender agent.

Gajah Tunggal is a synthetic rubber manufacturing company based in Jakarta, Indonesia.

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