PGN prices high yield bond

Indonesian corporate struggles with difficult markets and ambitious pricing targets.

A few days later than expected, Indonesian gas TD company, Perusahaan Gas Negara PGN priced a downsized $125 million high yield bond on Friday. The 10p7 issue was led by the company's house bank Credit Suisse First Boston and follows a debut $150 million in September last year.

Pricing came at 98% on a coupon of 7.5% to yield 7.875% or 480bp over Treasuries. Fees were 1.5%.

The deal was reduced from an initial size of $150 million to $125 million and closed marginally oversubscribed. Had the company been willing to offer investors an 8% coupon, observers say the book would have closed a number of times covered.

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