gajah-tunggal-attracts-1-billion-in-demand-for-bond-top-up

Gajah Tunggal attracts $1 billion in demand for bond top up

The re-opened 2010 bonds price at the tight end with investors confident about a healthy secondary market.
June 04, 2007
PT Gajah Tunggal, IndonesiaÆs largest tyre company, re-opened its July 2010 bond programme last night, pricing $95 million worth of 10.25% guaranteed senior unsecured notes via Credit Suisse and Lehman Brothers. The B2stableBpositive Reg-S transaction attracted a $1 billion order book.

The re-opened bonds priced at 102.75 yielding 9.2%, in contrast to the existing bonds which were trading yesterday at 103.125 or 9.07%. The new issue price equates to a yield spread of 423.9bp over two-year Treasuries. The transaction tapped the companyÆs existing $325 million bond programme due to mature in 2010, raising the total size of the programme to $420 million.

In terms of geographical split, 73.4% of the bonds...
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