Gajah Tunggal sets tender cap for 8 3/8% notes at $163 million

By Marisa Wong

Los Angeles, June 17 – Indonesia’s PT Gajah Tunggal Tbk. announced it set the tender cap at $163 million for the cash tender offer for its $250 million outstanding 8 3/8% senior secured notes due 2022 (ISIN: XS1655090139).

As announced on June 9, 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.

Because the offer is capped, tenders may be prorated.

The tender offer will be financed through and is conditioned on a new issue of notes in an amount of at least $175 million. On Wednesday the company priced $175 million of 8.95% notes due 2026.

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.

Settlement is expected 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.

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