Megaworld to raise $200 million in perpetual notes

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Megaworld Corp. will be raising $200 million through the issuance of perpetual senior notes in the offshore bond market to refinance existing debt.

In a disclosure to the stock exchange on Wednesday, April 4, the listed property developer said the issuance has a fixed coupon rate for life of 6%. The perpetual notes will have a call option on April 2023, and any coupon payment date thereafter.

The Andrew L. Tan-led firm tapped American financial services firm JP Morgan to act as sole bookrunner for the issuance. The notes will then be listed at the Singapore Exchange Securities Trading Ltd.

Proceeds from the offer will be used to refinance the company’s existing indebtedness and general corporate purposes.

The issuance will mark Megaworld’s return to the offshore bond market since 2013, when it raised $250 million through 10-year bonds with a coupon rate of 4.25% per annum. The bonds were also listed at the Singapore Exchange Securities Trading Ltd.

Shares in Megaworld gained five centavos or 1.09% to close at P4.65 each at the stock exchange on Wednesday. — Arra B. Francia