DOUBLEDRAGON PROPERTIES Corp. has ordered several banks to set up an issuance of dollar-denominated senior notes to generate funding for its capital expenditures and maturing loans.
In a disclosure to the exchange, the property developer said it had mandated Credit Suisse and PNB Capital and Investment Corp. to start arranging a series of fixed-income investor calls on Thursday.
The planned offering is subject to market conditions. If it proceeds, the notes will be issued by DoubleDragon subsidiary DDPC Worldwide Pte. Ltd. and guaranteed by the company.
Credit Suisse will be the sole global coordinator for the plan, and together with PNB Capital, will be joint lead managers and bookrunners. The planned offering involves Regulation S only, dollar-denominated guaranteed long-term senior bonds.
A Regulation S offering means the securities are executed in countries outside the United States.
Proceeds from the issuance will be used to support DoubleDragon’s capital expenditures, maturing and existing obligations, and general corporate purposes.
In its first-quarter earnings report, DoubleDragon said it had accounts payable and other liabilities amounting to P9.2 billion and short-term notes payable amounting to P11.58 billion. Its total liabilities stood at P70.81 billion.
The company’s earnings fell 42% to P536.69 million in the three months to March due to a one-off fair value gain last year. Its core net income, which excludes unrealized fair value gains, rose 133% to P427.94 million.
Aside from the proposed notes issuance, DoubleDragon is also planning to raise capital through a P16.97-billion real estate investment trust offering in the fourth quarter. Proceeds from the offering will be used to build about 450,000 square maters of leasable floor space to boost its recurring revenue portfolio.
Shares in DoubleDragon at the stock exchange picked up two centavos or 0.12% to close at P16.80 each on Thursday.
Meanwhile, Gotianun-led Filinvest Land, Inc. (FLI) said in a disclosure to the exchange that it is also planning a shelf registration of fixed-rate peso-denominated retail bonds. It did not provide further details to the plan as of Thursday.
Shares in FLI ended flat on Thursday at 97 centavos apiece. — Denise A. Valdez