PETRON Corp. said it had completed the issuance of its $500-million undated unsubordinated capital securities, which were listed in Singapore on Monday.
The country’s largest integrated oil refining and marketing company expects net proceeds of approximately $498 million after the deduction of commissions with the issuance’s completion on Jan. 19.
The amount will be applied by the company “for the repurchase, refinancing and/or redemption of undated subordinated capital securities, the repayment of indebtedness and for general corporate purposes, including capital expenditures,” it said.
“The securities are expected to be listed with the Singapore Exchange Securities Trading Limited on Jan. 22, 2018,” it told the local bourse.
Petron’s senior perpetual capital securities, or debt that has no maturity date for the return of principal, pay an interest of 4.6% per annum.
Subject to applicable law, Petron may redeem the securities — in whole but not in part — on the “step up date” or any subsequent distribution payment date at the redemption price after giving not less than 30 and not more than 60 calendar days’ irrevocable notice.
The company set the distribution payment dates on Jan. 19 and July of each year starting on July 19, 2018. It placed the step up date on July 19, 2023.
Petron’s issuance comes after the company said last week that it would be buying its debt holders’ $401,957,000 worth of securities in a tender offer.
The figure was the total tendered through the offering and the final maximum acceptance amount determined by the company.
On Monday, shares in Petron rose 1.64% to P9.28 each. — Victor V. Saulon
