Lippo Malls Indonesia Retail Trust (LMIRT) has commenced the tender offers of its outstanding senior notes.
On Jan 16, the trust invited eligible holders of its US$250 million ($334.1 million) 7.25% senior notes due 2024 (2024 notes) and eligible holders of its US$200 million 7.5% senior notes due 2026 (2026 notes) to tender their notes for purchase for cash up to the aggregate principal amount of the notes held by the holders.
As at Jan 16, there were US$188.3 million outstanding in the aggregate principal amount for the 2024 notes and US$143.2 million outstanding in the aggregate principal amount for the 2026 notes.
The 2024 notes will be prioritised. LMIRT says it expects to allocate at least 80% of the acceptance consideration for purchasing the 2024 notes. The remainder will be used for the 2026 notes.
Tender instructions for the 2024 and 2026 notes may be submitted on a “non-competitive” or “competitive” basis. A non-competitive tender instruction does not specify an offer price while a competitive tender instruction specifies an offer price that is greater than US$900 for each US$1,000 principal amount of the 2024 notes.
The offer is valid till 4pm on Jan 24 (London time) or at 12am on Jan 25 (Singapore time).
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LMIRT is expected to pay the purchase price of the notes, which will be determined by an “unmodified Dutch auction” procedure, on the settlement date, which is expected to be on Jan 29.
As at 9.14am, units in LMIRT are trading flat at 1.5 cents.
