VISTA LAND & Lifescapes, Inc. (VLL) is issuing $200-million (about P9.91 billion) senior guaranteed notes through a wholly owned subsidiary to refinance existing loans.

In a disclosure on Tuesday, the Villar-led company said its subsidiary VLL International, Inc. has signed a subscription agreement with several banks to be managers of the offer.

VLL International will be the vehicle for the issuance, and the banks it contracted were Credit Suisse (Singapore) Ltd., DBS Bank Ltd. and The Hongkong and Shanghai Banking Corp. Ltd.

BDO Capital & Investment Corp. and China Bank Capital Corp. were tapped as domestic lead managers for the issuance.

The $200-million notes, which will be issued as a drawdown from VLL International’s $2-billion medium-term note program, will have a coupon rate of 7.25% and will be due in 2027. Proceeds from the offering will be used to refinance existing debt, purchase, develop, construct or improve assets, property or equipment, and support general corporate needs.

In a July 8 disclosure, VLL said the proceeds from the planned dollar-denominated offering will refinance existing notes due in 2022 through a tender offer and consent solicitation.

But on Tuesday, it said the tender offer and consent solicitation plan are being scrapped.

“[W]e disclose the termination of the tender offer and consent solicitation launched by (VLL International) in respect of the latter’s outstanding $425-million 7.375% senior guaranteed notes due 2022,” VLL told the exchange Tuesday.

“As a result of such termination, any tender instruction already received will be rejected,” it added.

VLL’s earnings in the first quarter slid 8% to P2.34 billion due to a decline in project completions when a lockdown was implemented from the coronavirus outbreak. Revenues dropped 3% to P9.93 billion due to the suspension of construction activities since mid-March. Shares in VLL at the stock exchange dipped four centavos or 1.07% to close at P3.70 each on Tuesday. —Denise A. Valdez

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