Altus-Chandra Petrochemical buyback bond US$7.9 mio

BI/market

16/9/2011

Irvin Avriano A.

Bisnis Indonesia

Altus-Chandra Petrochemical buyback bond US$7.9 mio

JAKARTA: Altus Capital Pte Ltd, subsidiary of stock emitters PT Chandra Asri Petrochemical Tbk, buyback some of its existing US dollar denominated bond worth US$7.9 million or equal to IDR69.64 billion.

"The aggregate principal amount of the notes remaining outstanding following the cancellation of the purchased notes would be US$214.78 mio," said the management in the Altus Capital information disclosure to the Singapore Stock Exchange today.

The corporate action also caused the already bought notes won't be recorded in the bourse. The whole notes is guaranteed by Chandra Asri Petrochemical and two of their subsidary, namely PT Styrindo Mono Indonesia and PT Petrokimia Butadiene Indonesia. The three companies are members to business group owned by Prajogo Pangestu.

Chandra Asri Petrochemical issue the notes through its subsidiary Altus Capital on February 10th 2010 with principal US$230 mio and will be matured on February 10th 2015.

The notes is sold on 97.94% level from the principal and burdened with 12.875% coupon p.a. which will be paid every Februari and August 10th. The effective coupon is settled on 14.81% level.

The fund obtain by the bond issuance will be utilized by the company to paid off some of its bank loan and other Chandra Petrochemical's long-tenured debt. In the time when the bond issued, its gathered B+ rating from Standard & Poor's Rating Services and B2 from Moody's Investors Service Inc.

Prajogo Pangestu business group holding company namely PT Barito Pacific Tbk owned 66.47% Chandra Petrochemical shares, in their 1Q2011 financial statement.

The rest of the shares owned by Appleton Investment 22.87%, Marigold Resource 5.52%, Prajogo Pangestu 0.95%, Ibrahim Risjad 0.45%, Henry Halim 0.06%, Erwin Ciputra 0.01%, and public 5.14%.

Chandra Petrochemical is a result from PT Tri Polyta Indonesia Tbk and PT Chandra Asri merging action last year. Chandra Petrochemical have three subsidiary namely Styrindo Mono Indonesia, Petrokimia Butadiene Indonesia, and Altus Capital.

Chandra Petrochemical, which shares coded TPIA, plan to issue new shares in rights issue process worth IDR1.9 trio--3.6 trio in this mid-year. But caused by market condition which judged less conductive, the plan was hold by the management which commandeered by Erwin Ciputra.