Sulfindo gets $151m from bond sale<\/p>\n
HONG KONG: PT Sulfindo Adiusaha, an Indonesian chemical maker,
\nraised US$151 million selling bonds and warrants to investors to
\nrepay debt and invest in a power plant, according to a term sheet
\nof the sale.<\/p>\n
The three-year bonds, to mature in December 2008, will pay a
\n10 percent coupon and 12 percent yield. Each $100,000 bond is
\nattached to 100 warrants issued by PT Sulfindo, entitling the
\nbondholders to subscribe to the company's initial public
\noffering, the sale's document said.<\/p>\n
PT Sulfindo plans to raise at least $40 million by selling 30
\npercent of the company in an IPO in Singapore. The company will
\nincrease the bonds' coupon if the share sale isn't completed by
\nDec. 7, 2006.<\/p>\n
Jakarta-based PT Sulfindo also plans to raise an additional
\n$195 million selling high-yield notes or debt within 12 months
\nafter the sale of the bonds and warrants, the term sheet said.
\nMerrill Lynch & Co. arranged the sale.<\/p>\n
PT Sulfindo requires $210 million to finance its operations,
\nthe document said. Should the proceeds from the debt offerings
\nexceed its financing needs, the company will use some capital to
\nredeem a portion of the bonds, the document said.<\/p>\n
The company plans to use $85 million to repay a loan from PT
\nBank Mandiri, Indonesia's biggest lender, and other outstanding
\ndebt. The remainder of the proceeds will be invested in a power
\nplant. -- Bloomberg<\/p>",
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