VISTA LAND & Lifescapes, Inc. (VLL) has mandated banks to arrange a dollar-denominated bond offering to refinance its existing loans that are due in two years.
In a disclosure to the exchange on Wednesday, the Villar-led property developer said it is planning to issue fixed-rate dollar notes through a drawdown from the medium-term note (MTN) program of its wholly owned subsidiary VLL International, Inc.
VLL tapped DBS Bank Ltd. and HSBC as joint global coordinators, joint lead managers and joint bookrunners, and Credit Suisse as joint lead manager and joint bookrunner for the offering.
The banks were ordered to arrange a series of fixed income investor calls on Wednesday.
The planned offering will involve Regulation S only, dollar-denominated senior unsecured guaranteed notes. A Regulation S offering means the securities are executed in countries outside the United States.
Once finalized, the notes will be issued by VLL International and will be unconditionally and irrevocably guaranteed by VLL and certain VLL subsidiaries.
Proceeds from the issuance will be used to refinance VLL’s existing notes that are due in 2022 through a tender offer and consent solicitation subject to market conditions.
In the first quarter, VLL’s earnings fell 8% to P2.34 billion due to a decline in project completions as Luzon was placed under a lockdown. The suspension of construction activities due to the coronavirus outbreak led to a 3% revenue drop to P9.93 billion.
Shares in VLL at the stock exchange ended flat on Wednesday at P3.90 each. — Denise A. Valdez
