Medco Energi has offered to repurchase up to $250mn of three of its outstanding dollar bonds – their $500mn 6.75% 2025s, $539mn 7.375% 2026s, and $602mn 6.375% 2027s. Bondholders who tender their bonds will receive $950, $900, and $820 for each $1,000 in principal of the 2025s, 2026s, and 2027s respectively. Medco’s 2025s are currently trading at 96 cents on the dollar, yielding 8.71%. Its 2026s are at 90.5, yielding 10.63% and its 2027s are at 82.28, yielding 11.75%.
Those who accept the tender before October 14 will get an ‘additional early tender premium’ of $30 per $1,000 in principal amount for each of the bonds. The deadline is on November 7. The offer will be funded using cash on hand from the guarantor and its subsidiaries and funds from the parent’s planned borrowing. IFR notes that this is Medco’s second liability management exercise this year, following a bond tender in April, where it bought back $150mn across its 2026s and 2027s.