Milbank Advises on US$800 Million PT Adaro High-Yield Offering

HONG KONG, 4 November, 2009 – Milbank, Tweed, Hadley & McCloy LLP represented PT Adaro Indonesia on its US$800 million high-yield bond offering, Indonesia’s largest corporate US dollar bond and its first 10-year private sector bond offering. The transaction, which closed late last month, was also Asia’s biggest high-yield bond offering since June 2008.

PT Adaro Indonesia is the principal subsidiary of PT Adaro Energy, listed on the Indonesia Stock Exchange.

“We have had a well-established institutional relationship with the PT Adaro group since its leveraged buyout back in 2005 and have also advised the group on other successful re-financings and new financings this year,” said David Zemans, Milbank’s managing partner in Singapore. The deal team was led by Anthony Root, head of Milbank’s corporate practice in Asia, supported by associates Andrew Yang and Wei Xiao in Hong Kong.

The offering consisted of US$800 million 7.625% guaranteed senior notes due 2019, unsecured but unconditionally and irrevocably guaranteed by PT Adaro Energy Tbk, with a Rule 144A, Reg S issue on the Singapore Stock Exchange.

Credit Suisse, DBS Bank and UBS were the joint bookrunners, while Oversea-Chinese Banking Corporation (OCBC) acted as a lead manager for the Rule 144A, Reg S issue.

Other law firms involved included Hendra Soenardi (issuer’s Indonesian counsel); Latham & Watkins (underwriters’ US counsel) and Lubis, Ganie & Surowidjojo (underwriters’ Indonesian counsel).

About Milbank

Milbank, Tweed, Hadley & McCloy LLP is a leading global law firm that for more than 140 years has provided innovative legal solutions in many of the world’s largest, most complex and innovative transactions. Our transactional expertise includes Acquisition Finance, Capital Markets, Corporate Finance, Project Finance and other major fields of law practice. Headquartered in New York, Milbank has 10 offices worldwide, including Beijing, Hong Kong, Singapore and Tokyo.