Indika completes the issuance of US$500m worth senior notes

By Peni Pedriawan

IDX-listed PT Indika Energy Tbk recently announced it has completed the issuance of US$500,000,000 or 6.375% of Senior Notes due 2023 through its wholly owned finance subsidiary, Indo Energy Finance II B.V. on January 24, 2013.

"The net proceeds from the issuance of the Notes, after deduction of fees, commissions and other estimated expenses payable in connection with the offering, will be approximately US$485.0 million," the company said in a statement made available at the exchange.

It was stated that Indika Energy plans to use the net proceeds from the issuance of the Notes for the repayment of US$235.0 million of existing bank indebtedness; the redemption of Indo Integrated Energy II B.V.?s US$230,000,000 or 9.75% Senior Notes due 2016, together with accrued and unpaid interest thereon and the applicable redemption price; and the remainder for the repayment of other existing indebtedness, working capital and other general corporate purposes.

Indo Integrated Energy II B.V. and Indo Energy Finance B.V. are wholly owned finance subsidiaries of Indika Energy.

Editing by Er Audy Zandri