DOUBLEDRAGON Corp. said on Thursday that its unit had raised an additional $20 million in a tap offering of its outstanding senior guaranteed notes due in 2025.
It said the proceeds from the tap offering, which allows a company to sell a debt instrument from a previous issuance, will be used to develop and construct Hotel101 overseas projects and for general corporate purposes.
“DoubleDragon believes it is about time that a Filipino hotel brand be exported overseas,” the company said.
The existing $160-million, 7.25% notes of subsidiary DDPC Worldwide Pte. Ltd. are listed on the Singapore Exchange Securities Trading Ltd.
“DoubleDragon continues to increase diversification of its funding sources as it prepares itself to grow its business operations inside and outside the Philippines over the long-term,” the listed company said, adding that Philippine companies have successfully offered and listed fixed-term senior bonds on the Singapore exchange.
The notes’ issuer DDPC Worldwide and guarantor DoubleDragon have executed a subscription agreement with UBS AG’s Singapore branch as sole global coordinator, lead manager and bookrunner.
The notes under the tap offering will be consolidated with and form a single series with the issuer’s existing $160-million senior guaranteed notes due 2025, which were issued on separate dates.
DoubleDragon said it envisions its unit Hotel101 Global Pte. Ltd. to hit 500,000 rooms under the Hotel101 global portfolio by 2040 as it aims to make the brand become “one of the top 5 global hotel groups operating in over 101 countries.”
On Thursday, shares in the company slipped by 1.03% or seven centavos to P6.73 each.