Bakrie Telecom issues $250 million debut bond

Indonesian mobile phone operator Bakrie Telecom priced a $250 million five-year bond late Friday, but the notes opened Monday’s session trading weaker.

Indonesian mobile phone operator Bakrie Telecom sold $250 million worth of five-year bonds on Friday. The 144A high-yield notes, which are callable after three years, pay a semi-annual coupon of 11.5% and were re-offered at par, resulting in a yield of 11.5% as well. The maturity date has been set to May 7, 2015.

Bakrie initially announced a deal roadshow on April 21 and on the following Monday April 26 it indicated that it would sell $250 million worth of five-year bonds. Unfortunately, the Asian stock markets opened the week in the red and Asian credit default swaps CDS widened. The iTraxx investment grade index was wider by 3bp and Indonesian five-year bonds had...

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