Sulfindo gets $151m from bond sale

Sulfindo gets $151m from bond sale

HONG KONG: PT Sulfindo Adiusaha, an Indonesian chemical maker, raised US$151 million selling bonds and warrants to investors to repay debt and invest in a power plant, according to a term sheet of the sale.

The three-year bonds, to mature in December 2008, will pay a 10 percent coupon and 12 percent yield. Each $100,000 bond is attached to 100 warrants issued by PT Sulfindo, entitling the bondholders to subscribe to the company's initial public offering, the sale's document said.

PT Sulfindo plans to raise at least $40 million by selling 30 percent of the company in an IPO in Singapore. The company will increase the bonds' coupon if the share sale isn't completed by Dec. 7, 2006.

Jakarta-based PT Sulfindo also plans to raise an additional $195 million selling high-yield notes or debt within 12 months after the sale of the bonds and warrants, the term sheet said. Merrill Lynch & Co. arranged the sale.

PT Sulfindo requires $210 million to finance its operations, the document said. Should the proceeds from the debt offerings exceed its financing needs, the company will use some capital to redeem a portion of the bonds, the document said.

The company plans to use $85 million to repay a loan from PT Bank Mandiri, Indonesia's biggest lender, and other outstanding debt. The remainder of the proceeds will be invested in a power plant. -- Bloomberg