Medco Energi, Owned By The Late Conglomerate Arifin Panigoro, Completes A US$150 Million Global Bond Buyback

Photo: Doc. Medco Energi

JAKARTA - The oil and gas company owned by the late conglomerate Arifin Panigoro, PT Medco Energi Internasional Tbk (MEDC) completed the buyback of two series of global bonds worth 150 million US dollars.

Previously, the company had made a tender offer during April 28, 2022 - May 25, 2022 for two global bonds, namely senior bonds maturing in 2026 with 7.375 percent interest and senior debt securities maturing in 2027 with 6.375 percent interest.

Each global bond is issued by Medco Oak Tree Pte. Ltd. and Medco Bell Pte Ltd. These two notes each have an out of $650 million value.

In an official statement from MEDC, quoted on Monday, June 6, the company has paid 108.74 million US dollars as the initial tender offer price, and a total of 435,500 US dollars as the final tender offer price for the 2026 notes.

"In addition, the company has also paid 40.81 million US dollars as the initial tender offer price for the 2027 bonds," explained Medco Energi's management.

Apart from this global bond principal, MEDC through its subsidiaries has also paid 402,652.95 US dollars for accrued interest in 2026 debt securities and 935,568.44 US dollars for 2027 debt accrued interest.

Thus, after the global bond repurchase transaction worth 150 million US dollars, the principal amount owed for the 2026 global bond is 539,306,000 US dollars and the principal outstanding for the 2027 global bond is 601,695 million US dollars.

Meanwhile, MEDC's action in accelerating debt repayment was previously carried out on rupiah bonds. In March 2022, the company legally obtained approval to accelerate the repayment of its bonds maturing on June 14, 2022 to March 25, 2022, or accelerated by three months.

This approval was obtained after holding the General Meeting of Bondholders (RUPO) on March 11, 2022, attended by 82.88 percent of the quorum.