San Miguel plans P30-B fixed-rate bond offer

SAN Miguel Corp. (SMC) is looking to offer P30-billion fixed-rate bonds, comprising a base offer of P25 billion with an oversubscription option of up to P5 billion.

“The Board of Directors approved and delegated to Management the determination of the terms and conditions of the issuance and offering of the Fixed Rate Bonds during the [Nov. 11] Regular Board of Directors’ Meeting of the Company,” SMC told the exchange on Tuesday. 

SMC said it had submitted the registration statement and preliminary prospectus for the shelf-registration of P60-billion fixed-rate bonds to the Securities and Exchange Commission (SEC) on Tuesday, along with the offer supplement for the initial tranche.

The P60-billion shelf-registered bonds will be offered within three years and will be issued at 100% of face value.

Meanwhile, the initial P30-billion fixed-rate bonds will consist of Series J Bonds due 2027 and Series K Bonds due 2029.

“The entire proceeds for [the initial offer] will be used for refinancing of the Company’s short term loan facilities, other general corporate purposes, and expenses of the shelf registration of the Bonds and offering of the Offer Bonds,” SMC said in its offer supplement dated Dec. 6.

The company’s short-term loans were used to redeem its Series 2-C and Series 2-E preferred shares in September.

SMC engaged BDO Capital & Investment Corp. and China Bank Capital Corp. to be the joint issue managers of the offer and the two will be joined by BPI Capital Corp., Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint lead underwriters and bookrunners.

On Tuesday, shares of SMC at the local bourse declined 0.53% or 60 centavos to close at P112.40 apiece. — Keren Concepcion G. Valmonte