Jakarta, 25 March 2019 - PT Lippo Karawaci Tbk ("LPKR" or the "Company"), Indonesia's leading integrated real estate developer, today announced that it has closed its tender offer ("Tender Offer") for its outstanding USD410m 7.00% senior notes due 2022 ("2022 Notes") and USD425m 6.75% senior notes due 2026 ("2026 Notes"), made as part of its comprehensive strategic transformation plan announced on 12 March 2019.
As part of the Tender Offer, holders of the 2022 Notes and 2026 Notes, who had validly tendered prior to or at 4.00 p.m. London time on 22 March 2019 (the "Expiration Deadline"), will receive a price equal to the amount of (a) USD900 per USD1,000 principal amount in the case of the 2022 Notes and (b) USD820 per USD1,000 principal amount in the case of the 2026 Notes. These represent a premia to the respective traded prices of the 2022 Notes and 2026 Notes prior to the launch of the Tender Offer on 12 March 2019. At the Expiration Deadline, valid tenders had been received with respect to USD8.67m in aggregate principal amount of the 2022 Notes and 2026 Notes.
The Tender Offer is one of LPKR's initiatives to delever its balance sheet as part of its strategic transformation plan. The balance amount earmarked for the Tender Offer will be used for the repayment of other existing indebtedness, and/or general corporate purposes. Additionally, the Company will also utilise USD125m towards the repayment of other existing indebtedness due within the next two years, to achieve its objective of deleveraging its balance sheet.
The modest take-up rate and increase in traded prices of the notes post the launch of the Tender Offer attest to the noteholders' confidence in LPKR's ability to improve liquidity and meet its financial obligations in the medium to long term. This is in line with the global ratings agencies' current views on the Company. Moody's Investors Service recently changed LPKR's ratings outlook to 'Stable' from 'Negative'; S&P Global Ratings placed the Company's long-term issuer credit rating on CreditWatch Positive; while Fitch Ratings placed both the Company's Long-term Issuer Default Ratings as well as its National Long-term Rating on Rating Watch Positive.
Mr. John Riady, CEO of LPKR, said, "The traded prices of LPKR's notes and shares have steadily improved since the announcement of our strategic transformation plan, and I am heartened by the strong vote of confidence from our noteholders and shareholders alike. The management team and I are more committed than ever to execute the rest of our strategic transformation plan."
Credit Suisse is the Dealer-Manager for the Tender Offer.
About PT Lippo Karawaci Tbk (www.lippokarawaci.co.id)
Listed on the Indonesia Stock Exchange, Lippo Karawaci ("LPKR") is Indonesia's leading integrated real estate company with total assets of US$3.4bn as at 31 December 2018. Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.
Present in 35 cities, we are Indonesia's leading property developer with 1,297 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 54.4% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar.
LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia's leading private hospitals network, with 35 state-of-the-art-hospitals across 27 cities nationwide – 12 hospitals in Greater Jakarta, 23 across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara, supported by over 2,900 specialists and general practitioners and over 10,000 nurses and support staff.
LPKR also has two listed REITs in Singapore, namely First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust with US$1.0bn and US$1.4bn of assets under management respectively, as at 31 December 2018.
For more information please contact:
PT LIPPO KARAWACI TBK
William Wijaya Utama
Danang Kemayan Jati
Vice President, Head of Corporate Communication
Tel: +6221 739 9928
Mobile: +62 811 850 102
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