Indonesia Asahan Aluminium begins tender offers for three notes

By Marisa Wong

Los Angeles, July 15 – PT Indonesia Asahan Aluminium (Persero) announced three concurrent but separate offers to purchase for cash any and all of the notes from three series, up to a $1 billion maximum consideration, according to a Friday press release.

The company is offering to purchase the following notes, listed in order of acceptance priority level and with the consideration per $1,000 principal amount:

• $750 million 6.757% notes due 2048 (ISIN: USY7140WAB47, US74445PAB85) at $941;

• $1 billion 6.53% notes due 2028 (ISIN: USY7140WAC20, US74445PAC68) at $1,032; and

• $1.25 billion 5.71% notes due 2023 (ISIN: USY7140WAD03, US74445PAD42) at $1,023.

The company will also pay accrued interest to but excluding the settlement date.

The company will accept notes in order of acceptance priority level, subject to satisfaction of the maximum purchase price consideration condition.

Each tender offer is conditioned on the aggregate purchase price consideration for all the offers, excluding accrued interest, (after taking into account notes of each series accepted for purchase with a higher acceptance priority level) not exceeding $1 billion.

The cash cap may be waived, increased or reduced at the company’s discretion.

If any series of notes is accepted for purchase, all notes of that series will be accepted. No series will be prorated, the company noted.

The offers expire at 5 p.m. ET on July 21. Tenders may be withdrawn prior to the expiration time.

Tenders under guaranteed delivery procedures are due by 5 p.m. ET on July 25.

Settlement is expected to occur on July 26.

BNP Paribas (liability.management@bnpparibas.com; dl.asia.syndicate@asia.bnpparibas.com; +852 2108 5228), J.P. Morgan (liability_management_hk@jpmorgan.com; +852 2800 8019) and Mandiri Securities (msliabilitymgmt@mandirisek.co.id; +65 6589 3880) are the dealer managers.

Morrow Sodali Ltd. (mindid@investor.morrowsodali.com; https://projects.morrowsodali.com/mindid; +852 2319 4130; +44 20 4513 6933; 203 609-4910) is the information and tender agent.

The company said the purpose of the offers is to optimize financing costs and actively manage its leverage.

Known as Inalum, 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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