Press Metal Aluminium Holdings Bhd, the largest integrated aluminium producer in South East Asia, today announced that it has successfully priced its Regulation S US$ denominated Senior Notes of US$400.0 million. 

This offering marks the country’s first high yield US Dollar issue in more than a decade. The coupon rate on the 5-year Senior Notes, which has a call option after 3 years, has been set at 4.80%. 

The Notes will be issued by Press Metal’s wholly-owned subsidiary, Press Metal (Labuan) Ltd. The strong response from global investors led to a final order book of over US$3.8 billion representing an oversubscription of 9.5 times over the final issuance size of US$400.0 million and resulted in a final pricing which was 45 basis points lower than the initial price guidance of 5.25%. 

The allocation was spread out to a diverse group of investors, comprising asset management companies and financial institution across Asia and Europe, with participation from 240 accounts.

The Notes have been assigned ratings of Ba3 (stable) by Moody’s Investors Service Inc. and BB- (positive) by Standard & Poor’s Ratings Services. The Notes will be listed on Labuan International Financial Exchange Inc. and the Stock Exchange of Hong Kong Limited.

Proceeds from the Notes will be used to refinance existing indebtedness and for general corporate purposes of the Press Metal group of companies. Press Metal will enjoy interest cost saving from this refinancing. A US$ denominated instrument serves as a natural hedge to Press Metal group’s revenue which is primarily in US Dollars. This refinancing is prudent in view of a rising interest rate environment and to enhance the Company’s financial position.

"We are very encouraged by the strong participation from global investors for our inaugural Notes, which is a validation of a business that we have grown into the largest integrated aluminium producer in Southeast Asia. This successful offering represents an important milestone for Press Metal, demonstrating our ability to access the international debt capital markets and diversify our funding source.” says Tan Sri Koon Poh Keong, Group Chief Executive Officer of Press Metal.

Citigroup, Deutsche Bank, J.P. Morgan and Maybank were appointed as the Joint Lead Managers and Joint Lead Bookrunners for the Notes.

Twitter