ANG-LED San Miguel Corp. (SMC) filed the registration statement and preliminary prospectus for its P60-billion fixed-rate bonds to be used for redemption of preferred shares and bonds, and debt repayments.
According to the company’s prospectus, the base offer amounts to P40 billion with an oversubscription of up to P20 billion and will be issued at 100% of face value.
It will be divided into: 5.25-year series L due 2028, 7-year series M due 2029, and 10-year series N due 2032.
The prospectus stated that the entire net proceeds for the offer will be used for the optional redemption of the company’s series 2H preferred shares and up to P13.15 billion for final redemption and payment of the company’s series E bonds.
On Sept. 22, its board of directors approved the redemption of its 164 million issued and outstanding series 2H preferred shares at a redemption price of P75 apiece.
Proceeds will also be used for refinancing certain dollar-denominated obligations of the company, and for the repayment of the peso-denominated short-term facilities.
Up to P17.1 billion will be used to repay the company’s $300-million facility agreement with MUFG Bank, Ltd. with the repayment of the obligation set in the second quarter of 2023.
“The loan was incurred on June 26, 2018 with a maturity date of June 22, 2023,” the firm said.
The firm’s indicative timetable showed that the company set price setting and allocation in the last week of October.
Meanwhile, the public offer period will run from Nov. 8 to 14 with the settlement, and issue and listing date set on Nov. 21.
SMC tapped BDO Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp. as joint issue managers.
Meanwhile, joint lead underwriters and bookrunners are Asia United Bank Corp., Bank of Commerce, BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp.
On Wednesday, shares in SMC remained unchanged at P97.50 apiece. — Justine Irish D. Tabile