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