Indosat high yield bond offer
US$650m
Synopsis: Milbank, Melli Darsa & Co, Assegaf Hamzah & Partners, Sidley Austin and Linklaters advised one of Indonesia’s largest mobile phone companies on its bond offer due in 2020. 
Firm
Client
Role
Milbank [lead partner: Naomi Ishikawa]
Underwriters
Lead counsel
Linklaters
Underwriters
Dutch counsel
Melli Darsa & Co
Underwriters
Indonesian counsel
Sidley Austin [lead partner: Matthew Sheridan]
Issuer
Lead counsel
Assegaf Hamzah & Partners
Issuer
Indonesian counsel

PT Indosat Tbk – one of Indonesia’s largest mobile phone companies – has retained Assegaf Hamzah & Partners and Sidley Austin as the issuer’s Indonesian and lead counsels respectively on the US$650m high yield bond offer.

The offering consisted of 10-year unsecured senior notes at 7.357%, due 2020. The notes issued by Indosat Palapa B.V. Company, is unconditionally guaranteed by Indosat Tbk. Milbank  represented the underwriting group, which included Citigroup as sole global coordinator, DBS Bank, Deutsche Bank, HSBC and The Royal Bank of Scotland Group as joint bookrunners.

The issuer, Indosat, has been a long standing client of Sidley Austin. Lead partner in this transaction Matthew Sheridan has represented Indosat on numerous equity and debt market deals since 1994. These include: Indonesia’s first privatisation through a capital markets transaction – a US$1.1bn global IPO of Indosat Tbk shares sold by the government of the Republic of Indonesia on the Jakarta Stock Exchange and on the New York Stock Exchange in 1994; a US$300m guaranteed notes listing on the Luxembourg Stock Exchange in 2003; a US$250m guaranteed notes issue on the Singapore Stock Exchange in 2005 and a 2008 guaranteed notes offer in 2008 and a US ‘high yield notes issue by Indosat in 2006.

The 2003, 2005, 2008 and 2006 notes issue by Indosat that Sidley Austin had acted for, all include high yield covenants.ALB

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