MEGAWORLD Corp. has priced its $200-million fixed senior perpetual notes at 5.375%, below the initial price guidance of 6%, it told the stock exchange on Friday.
“This was essentially flat to the tightest Philippine Fixed-For-Life instrument in the secondary market, implying no new issue premium. The tight pricing reflected the consistent and positive feedback investors had about the credit profile and track record of Megaworld,” the company said.
It said the issuance represents the first ever perpetual bond from the company and “a landmark return to the international bond market since 2013.”
It said during the two-day roadshow in Hong Kong and Singapore, the company received “strong anchor demand, which allowed for accelerated pricing within the two-day roadshow window itself.”
Megaworld said the offer was around two times oversubsubscribed. Its notes are unrated and will be listed in Singapore.
Proceeds will be used for general corporate purposes and refinance debt. J.P. Morgan was the offer’s sole bookrunner.
On Friday, Megaworld shares fell 1.74% to close at P4.52. — Victor V. Saulon
