Tenaga's $900 million debt tender goes live

Roadshows are likely to start at the beginning of next week following the SEC filing of a cash tender offer and new global bond offer in New York last night (Monday). Lehman Brothers and HSBC are joint dealer managers for the Malaysian utility's liability management exercise, which will comprise an offer to purchase for cash, all or any of its $300 million 7.2% notes due April 2007 put 2002 and its $600 million 7.875% notes due June 2004. There is a minimum tender size of $300 million.

The new global bond will have a 10-year maturity and will be rounded up to the nearest $100 million beyond the amount tendered. It is likely to be launched and priced the day before the tender officially closes on March 30 as a fixed spread to Treasuries, although the company has the right to fund itself via the bank market if they tender amount is not considered large enough. Commerce International Merchant Bank (CIMB) is also a joint bookrunner for the new deal.