Thanks to an aggressive pricing strategy by joint arrangers Barclays Capital and Credit Suisse, Indonesian power producer PT Cikarang Listrindo managed to execute a sizeable deal at the end of last week, despite weakening market conditions.
The $300 million high-yield Reg-S deal was issued with a final coupon of 9.25%. The initial yield guidance was 9.75%, but the arrangers managed to tighten that by setting the reoffer price at 99.106bp for a final yield of 9.5%. The bonds mature on January 29, 2015.
The final demand was approximately $1.65 billion from 142 accounts, leaving the deal 5.5 times covered. The majority of participation came from high-quality buy-and-hold investors. Seventy-two percent of the notes...
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