VISTA Land & Lifescapes, Inc. (VLL) has secured corporate notes amounting to P500 million to partially finance this year’s capital expenditures.
In a disclosure to the stock exchange on Friday, the listed property developer said the corporate notes are due 2028 with a fixed interest rate of 7.4985% per annum.
The corporate notes were issued to Eastwest Banking Corp., as per a corporate notes facility agreement the parties signed earlier this month. China Banking Corp., China Bank Savings, Inc., and Security Bank Corp were the note holders, while China Bank Capital Corp and SB Capital Investment Corp were tapped as joint lead underwriters.
China Bank Capital also acted as sole issue manager and sole bookrunner.
China Banking Corp. — Trust and Asset Management Group was the issuance’s facility agent, while VLL’s subsidiaries Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc., and Starmalls, Inc., were the subsidiary guarantors.
The P500-million corporate note issuance is in addition to the P7.7-billion note facility the company secured early this month, which will also be for VLL’s 2018 capex. The initial note issuance consisted of seven-year corporate notes worth P1.7 billion carrying an interest rate of 7.4913% per year, and 10-year corporate notes worth P6 billion with a coupon rate of 7.7083% per annum.
The Villar-led firm has committed to spend P50 billion in capex this year, in order to expand VLL’s leasable space to 1.4 million square meters. The company also looks to end the year with 30 shopping malls, from 22 at the end of 2017.
Earnings of VLL jumped by 13% to P2.6 billion in the first quarter of 2018, lifted by a 12% uptick in revenues to P10.1 billion during the same period.
Shares in VLL closed flat at P5.97 each at the stock exchange on Friday. — Arra B. Francia