Indonesia's Lippo Karawaci sets 9% minimum yield in note exchange

New York, April 15 - PT Lippo Karawaci Tbk. announced that subsidiary Sigma Capital Pte. Ltd. fixed the minimum yield to maturity at 9% for the new dollar-denominated senior notes due 2015 that it will issue in its exchange for its $250 million of 8 7/8% senior notes due 2011 issued by Lippo Karawaci Finance BV.

The company is offering to issue new senior notes due 2015 in exchange for the 8 7/8% notes in order to extend its consolidated debt maturity profile.

Lippo Karawaci said that holders cannot participate in both the exchange offer and a simultaneous consent solicitation.

The transactions were announced on April 9.

Lippo Karawaci said it is soliciting consents from holders of the 8 7/8% notes to permit, among other things, the incurrence of additional debt.

The company will hold a meeting for noteholders on May 3 in Hong Kong.

The Indonesian property developer said that it will pay a consent fee as an incentive to holders.

Citibank NA, London Branch is the exchange agent (44 20 7508-3867).

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