SAN MIGUEL FOOD and Beverage, Inc. (SMFB) has gained the nod of the country’s corporate regulator for its planned issuance of P15-billion fixed-rate bonds.
In a statement yesterday, the Securities and Exchange Commission (SEC) said it had approved the application of SMFB to offer the bonds in two series at face value.
“The SEC on Feb. 18 considered favorably the public offering by SMFB of fixed-rate bonds worth P15 billion,” it said.
The Series A bonds from the P15-billion bond issuance will have a tenor of five years from issue date or in 2025, while the Series B bonds will have a maturity of seven years from issue date or in 2027.
The bonds will be offered in minimum denominations of P50,000 each, then in integral multiples of P10,000 thereafter. They will be listed on the Philippine Dealing & Exchange Corp. and traded in denominations of P10,000.
In terms of optional redemption, SMFB may redeem the outstanding Series A bonds in whole on the third year or at 100.5% on the fourth year, while the outstanding Series B bonds may be redeemed at 101.0% on the fifth year or at 100.5% on the sixth year.
The company is expected to net around P14.81 billion from the offer, which it will use to fund the redemption of its outstanding 15-million Series 2 Perpetual Preferred Shares on Mar. 12. Redemption price is set at P1,000 per share.
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. are the joint lead underwriters and bookrunners for the offer.
SMFB filed its application for the bonds with the SEC in November. The bonds were given the top credit rating by local debt watcher Philippine Rating Services Corp., which means the obligations are expected to have minimal credit risk.
SMFB is the food and beverage unit of listed San Miguel Corp. (SMC). Shares in SMFB at the stock exchange lost P2.10 or 2.74% to P74.50 each, while shares in SMC erased P2.60 or 1.93% to P132.40 each on Wednesday. — Denise A. Valdez
