DEL MONTE Pacific Limited (DMPL) said it has completed its offering of Series A-2 preferred shares last Friday, raising $100 million in the process.
The country’s largest canned fruit manufacturer disclosed its preferred shares issuance, with a base size of $80 million and oversubscription option of $80 million, was oversubscribed by two million shares at the end of its offering date.
“The offering generated a total amount of $100 million, which includes $20 million from the oversubscribed shares,” DMPL said in a statement.
DMPL plans to use the proceeds of the offer to pay the outstanding bridge loan facility it secured from BDO Unibank, Inc., which will mature in February 2019. The company added the offering will also help the company strengthen its balance sheet. The shares will have annual coupon rate of 6.5%.
The company targets to list the shares on the main board of the Philippine Stock Exchange (PSE) on Dec. 15 under the ticker DMPA2.
This is the second tranche of DMPL’s shelf listing of up to 36 million Series A preference shares approved by the Securities and Exchange Commission and PSE. DMPL managed to raise $200 million in the first tranche of the offer last April, which also marked the first time dollar-denominated securities were listed on the local bourse.
DMPL tapped BDO Capital and Investment Corp. and China Bank Capital Corp. as joint lead underwriters for the offer, while BDO Capital acted as sole issue manager and sole bookrunner.
The listed firm swung to a net loss attributable to the parent of $2.08 million in the six months ending October, from an attributable profit of $12.92 million in the same period in 2016. Slower sales from its unit in the United States weighed down the company’s profit, which account for 78% of the group’s total sales.
DMPL is listed on both the PSE and the Singapore Stock Exchange. Local shares in DMPL were unchanged at the close of Tuesday’s trading at P11 each. — Arra B. Francia
