Indonesia's Star Energy gets needed consents to amend 11½% notes

By Marisa Wong

Madison, Wis., March 25 - Star Energy Geothermal (Wayang Windu) Ltd. said that holders of $322.6 million principal amount, or 95.6%, of its outstanding 11½% senior notes due 2015 tendered their notes and delivered their consents as of 5 p.m. ET on March 22, the early consent deadline of its previously announced tender offer.

The company said it will accept all early tendered notes for purchase.

The company began the cash tender offer on March 11 for any and all of its outstanding 11½% notes. As of Feb. 14, the outstanding principal amount of the notes was $337.5 million.

The company also solicited consents from holders of a majority in principal amount of the notes to proposed amendments to the indenture governing the notes. The amendments shorten the redemption notice period to five days from 30 days.

Holders who tendered their notes and delivered their consents by the early consent deadline will receive the total consideration of $1,062.50 for each $1,000 principal amount of notes. The total consideration includes a $30.00 early consent payment.

Holders who tender after the early consent deadline will receive the tender offer consideration of $1,032.50 per $1,000 of notes, or the total consideration less the early consent payment.

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

The early settlement date is March 28. The final settlement date is expected to be the third business day after the expiration time of the offer, which is 11:59 p.m. ET on April 8.

The tender offer and consent solicitation are conditioned on the company receiving sufficient proceeds from a debt securities offering to fund the tender offer and on the execution of a supplemental indenture effecting the proposed amendments, the latter of which is set to take effect on the early settlement date.

As for the financing condition, the company said it expects to receive net proceeds of $340 million from the issuance of $350 million 6 1/8% senior secured notes due 2020, also slated for March 28.

Barclays (212 528-7581, +65 6308 3342, +44 20 7773 8990 or liability.management@barclays.com) and DBS Bank Ltd. (+65 6878 9728 or liabilitymanagement@dbs.com) are the dealer managers and solicitation agents. D.F. King & Co. Inc. (800 714-3312 or 212 269-5550 for banks or brokers or starenergy@dfking.com) is the tender agent and information agent.

The Indonesian geothermal energy company originally issued $350 million of the 11½% notes.

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