PHOENIX PETROLEUM Philippines, Inc. said the Securities and Exchange Commission (SEC) had approved the registration of the company’s P10 billion worth of commercial papers and its permit to sell the securities.
In a disclosure to the stock exchange, Phoenix Petroleum said the certificate of permit to offer securities for sale issued by the SEC also authorized the offer, sale and issuance of an initial P7 billion worth of the commercial papers and the balance of P3 billion.
The company did not immediately respond to a request for details on the schedule of the offering.
Phoenix Petroleum previously said it will use 70% of the proceeds or around P4.9 billion for the importation of fuels and lubricants. The rest will be used to repay short-term loans with BDO Unibank, Inc., Asia United Bank Corp., Robinsons Bank Corp., United Coconut Planters Bank, and Development Bank of the Philippines, which are due in December.
On Wednesday, shares in the company traded higher by 2.43% to close at P10.94 each.
Last Dec. 5, Phoenix Petroleum said its board approved the subscription of 2 million preferred shares through private placement at an issue price of P1,000 per share. Proceeds will be used for the company’s capital expenditures.
It previously said that the issuance, with a total value of P2 billion, would have RCBC Capital Corp. as issue manager and underwriter.
On Dec. 14, Phoenix Petroleum sought voluntary trading suspension on its shares on Dec. 17 ahead of the redemption on Dec. 20 of 5 million preferred shares at P100 per share.
The redeemed shares would form part of the company’s treasury preferred shares and pursuant to its articles of incorporation particularly on the feature of its preferred shares, the same would be re-issued upon determination and approval of its board directors.
The transactions come after Phoenix Petroleum disclosed on Oct. 29 details of its subscription agreement with PXP Energy Corp.
On Oct. 26, PXP Energy announced the approval of its board on the subscription by Dennison Holdings Corp. of 340 million of the former’s common shares. Dennison Holdings and Phoenix Petroleum are both led by businessman Dennis A. Uy.
It said the subscription had an additional condition that Phoenix Petroleum shall grant certain preferential rights to PXP Energy for the latter to acquire up to 49% of the former’s interest in the planned joint venture with China National Offshore Oil Corp. (CNOOC).
The grant of preferential rights, however, is subject to the approval of the Phoenix Petroleum board and the consent of CNOOC.
Phoenix Petroleum announced on June 5 that it had signed a memorandum of understanding with a unit of CNOOC to develop a receiving terminal for imported liquefied natural gas in the country. — Victor V. Saulon