PT Saratoga Investama Sedaya Tbk. Successfully Issues USD 100 million Exchangeable Bond

On 26 May 2015, PT Saratoga Investama Sedaya Tbk. through its fully owned subsidiary Delta Investment Horizon Ltd. successfully issued a USD100 million, Coupon of 3.0% (YTM of 3.75%)Guaranteed Exchangeable Bond due 2020. We are grateful for the support and confidence of our investors.

This Exchangeable Bond (EB) issue not only reflects Saratoga’s ability to tap diverse funding sources whilst managing a cost effective and conservative leverage, but is also a significant step towards proving-up Saratoga’s unique business model. The issuance of this EB is part of Saratoga’s strategic initiative towards its ability to monetize and fund its investments, a key part of our active investment operating model.

The issued bond is exchangeable into Tower Bersama (TBIG:IJ) shares at a 22.5% premium equivalent to a strike price of IDR 10,706.7.  The exchange would represent 2.6% of total outstanding TBIG shares.

Saratoga plans to use the EB proceeds to fund new investments, repay a portion of its debt, and to support its general corporate activities.

Saratoga made its first investment in Tower Bersama in 2004, at a time when the company was still at its early stage with only seven towers.  Tower Bersama represents a significant part of Saratoga Investama’s infrastructure portfolio and will continue to be its single largest shareholder.  Saratoga focuses its investments in the three key drivers of Indonesia’s economy: Infrastructure, Consumers Products and Services and Natural Resources.

This transaction also marks a milestone as it is the first time that an Indonesian company has tapped into the equity-linked bond market since 2010.

The transaction was well oversubscribed with high quality investors participating across Asia and Europe. Close to 45% of final allocation was made to long-only outright investors.”

The issue was underwritten by Standard Chartered Bank and UBS Singapore.