Indosat may up bond size to $300m

Indosat may up bond size to $300m

JAKARTA: PT Indonesian Satellite Corp., or Indosat, is
considering raising the size of its proposed bond issue to US$300
million from the $180 million cited initially, a source with the
company said.

The source told Dow Jones Newswires on Friday that the planned
increase is because Indosat will also assume debts of cellular
unit PT Indosat Multi Media Mobile, or IM3, after a restructuring
of its cellular business is completed in September.

Earlier, Indosat planned to assume only the debts of another
cellular unit, PT Satelit Palapa Indonesia, totaling $360
million. About half the Satelindo debt comprises medium-term
notes.

Indosat will ask Satelindo notes holders to exchange the notes
for the proposed bond, which will have a longer tenor and more
attractive yield, the official added.

If the medium-term note holders decline the offer, Indosat
will buy back the notes, which will mature in 2006, using a
bridging loan, the official added. -- Dow Jones