SM PRIME Holdings, Inc. has received clearance from the Securities and Exchange Commission (SEC) for its proposed shelf registration of P100-billion debt securities.
In a statement Wednesday, the country’s corporate regulator said it has approved SM Prime’s plan to issue the fixed rate bonds, and has likewise given it permit to sell securities for the offering’s initial tranche.
The initial tranche covers the issuance of P15-billion Series K and Series L bonds, which may be oversubscribed by up to P5 billion. The Series K bonds have a tenor of five years and the Series L bonds have a tenor of seven years.
“In its meeting on Feb. 11, the Commission En Banc rendered effective SM Prime’s registration statement and approved the issuance of the corresponding order of registration, as well as the permit to sell securities to the public… subject to the company’s compliance with certain requirements,” the SEC said.
SM Prime is expected to net P14.79 billion from the issuance, and an additional P4.94 billion if the oversubscription option is utilized. This will be used to finance the company’s capital expenditures for mall expansion projects until 2022.
The SEC said the P80-billion remainder from SM Prime’s shelf registration may be offered within three years from its approval of the registration statement.
SM Prime earlier said it plans to start offering the first tranche in February, where the bonds will be offered in minimum denominations of P20,000 and in multiples of P10,000 thereafter.
The five-year Series K bonds may be redeemed by SM Prime in whole at 101% on the sixth and seventh interest payment dates, or at 100.5% on the eight and ninth interest payment dates. Then the seven-year Series L bonds may be redeemed at 101% on the 10th and 11th interest payment dates, or at 100.5% on the 12th and 13th interest payment dates.
BDO Capital & Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. have been tapped as joint lead underwriters for the offer.
The bonds will be listed at the Philippine Dealing & Exchange Corp.
SM Prime reported an attributable net income of P27.6 billion as of September last year, 18% higher compared with the same nine-month period in 2018 after a 14% jump in revenues to P85.03 billion.
Shares in the company at the stock exchange fell 40 centavos or 0.94% to P42.30 each on Wednesday. — Denise A. Valdez