Berlian Laju greenshoe exercised, lifts convertibles to $125 million

By Marisa Wong

Milwaukee, March 15 - PT Berlian Laju Tanker Tbk. announced that the placement agents of wholly owned subsidiary BLT International Corp.'s offering of 12% guaranteed convertible bonds due 2015 exercised a $25 million over-allotment option, increasing the size of the offering to $125 million from $100 million on Friday.

J.P. Morgan Securities Ltd. and RS Platou Markets AS are the agents for the Regulation S offering.

As part of the increase to the offering, the company plans to issue $16 million of the $25 million additional convertibles to Meadowstream Ltd., a wholly owned subsidiary of PT Tunggaladhi Baskara, through a private placement.

The convertibles issued to Meadowstream are under the same terms as those issued to other investors, with the exception that Meadowstream may not convert the bonds into shares of the company and that it only has the option to accept cash settlement for any of the bonds.

According to the original pricing announcement on Feb. 2, the bonds will be convertible beginning 41 days after the settlement date, which was Feb. 10. The initial conversion price is Rp. 737, which represents a conversion premium of 10%.

As previously reported, if the average of the volume-weighted average price of the company's shares for the 20 trading days preceding the date six months after the closing date is less than the conversion price, the conversion price will be adjusted downward to that average VWAP, subject to a floor of 80% of the conversion price then in effect.

The convertibles will be putable on the date that falls three years after closing with a yield to put of 12%.

The company said the proceeds will be used to make investments in the cabotage trade in Indonesia and may also be used to repay or redeem debt, including outstanding convertibles.

Berlian is a Jakarta, Indonesia-based liquid cargo shipping company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.