Mayer Brown advised PT Indika Energy Tbk (“Indika Energy”), a leading Indonesian integrated energy group and a long-standing client of Mayer Brown, on the successful issuance of one of Indonesia’s most complex high-yield issuances of the year: a US$575 million 5.875% Senior Notes due in 2024.

Mayer Brown’s team acted as the issuer’s international counsel for the bridge facility, high-yield notes issuance and consent solicitations, as well as indenture compliance matters related to the M&A transactions, which enabled Indika Energy to acquire an additional equity stake in PT Kideco Jaya Agung, the third-largest coal mine in Indonesia, in a deal valued at US$677.5 million. This strategic acquisition further strengthens Indika Energy’s position in the energy business value chain, which attracted overwhelming demand from investors globally.

The issuance had a record-low coupon among similarly rated issuers and received ratings of B2 (and potentially Ba3 after review) by Moody’s and B+ by Fitch, which represents a multi-notch credit improvement. It is the second bond issuance that Mayer Brown has advised Indika Energy on this year, following the issuance of US$265 million of 6.875% Senior Notes due 2022 back in April.

The team was led by Hong Kong-based Corporate & Securities partner Jason T. Elder and included partners Thomas Kollar and Doos Choi in Hong Kong and Jason Bazar in New York.

Jason T. Elder said: “Mayer Brown has been honored to have played a key role in advising and supporting Indika Energy’s growth and expansion over the years, and we are proud to have been able to lead a multi-practice team to support our valued client on this transformational deal. Drawing upon our extensive global experience and deep bench in Asia Pacific, our team was able to dispense highly-innovative advice throughout every step of this specialized issuance.”

He added, “This deal was one of the few ‘bridge-to-bond’ transactions in Asia Pacific, and attracted overwhelming investor demand. We are extremely pleased to have contributed to the success of this strategic acquisition.”