Indosat launches tender offers for 2010 and 2012 bonds

Two subsidiaries of Indonesian telecom services provider Indosat -- Indosat Finance Company and Indosat International Finance Company -- have launched separate and independent tender offers to buy the remainder of Indosat Finance's 7.75% bonds due in 2010 and Indosat International's 7.125% bonds that are set to mature in February 2012. The bonds have $234.7 million and $109.4
million left outstanding, respectively.

Aside from the conditional tender, the transaction also includes a consent solicitation and a new issue of senior unsecured debt to help pay for the tender.

The new issue will be denominated in US dollars and is expected to be of benchmark size, which implies a deal around the $500 million mark. The borrower is looking for a 10-year maturity and the bonds will be issued through its Indosat Palap subsidiary with Indosat as guarantor.