Medco Energi US$650 Million Bond Offering Oversubscribed Six Times
Jakarta-based integrated energy and natural resources company PT Medco Energi Internasional Tbk has successfully completed the issuance of a 7 year, 144A/Reg S US$650 million bond with a 6.375% coupon. The offering was 6 times oversubscribed. The Company also received rating upgrades from B to B+ (Stable) from S&P Ratings and from a B2 to B1 (Stable) from Moody’s, while Fitch affirmed their B+ (Stable) rating. According to a Medco Energi press release, the upgrades reflect “sustained improvement in the Company’s performance through improved earnings visibility, increased scale and geographic diversification following the successful acquisition and integration of Ophir Energy Plc.” The US$580 million acquisition of Ophir Energy closed in May 2019. Medco Energi plans to use the net proceeds from offering to exercise its right to redeem a USD Bond maturing in 2022 and to repay IDR bonds maturing in 2021.