Asian media firm Linktone has acquired US$20m of 5-year fixed-rate senior secured bonds, issued late last year by Indonesian DTH provider MNC Sky Vision, at 12.75% per annum.
Sky Vision, an affiliate of Asia’s Media Nusantara Citra, which is an indirect…
Asian media firm Linktone has acquired US$20m of 5-year fixed-rate senior secured bonds, issued late last year by Indonesian DTH provider MNC Sky Vision, at 12.75% per annum.
Sky Vision, an affiliate of Asia’s Media Nusantara Citra, which is an indirect majority shareholder of Linktone, mandated HSBC and Standard Chartered Bank as joint bookrunners for the bonds to fund its US$95m acquisition of S-band transponders from SES.
The notes are due November 16, 2015, and are rated B2 by Moody’s and B by S&P.
Hary Tanoesoedibjo, Linktone’s chairman and CEO, who also serves as Sky Vision’s President Commissioner, said: “Given our strong balance sheet, with US$80.5m in cash as of September 30, 2010, we believe this represents a prudent investment for Linktone, given the terms of the notes and strong reputation and growth potential of the issuer.” Sky Vision broadcasts from a single SES-owned satellite called Indosat II at 108.2E, which has ten active transponders and two back-ups. As well as expanding its S-band capacity, the proceeds of the notes will go towards refinancing a term loan with Lehman Brothers, obviating any material debt maturities over the next year.
