San Miguel seeks to retire $400M debt notes

CONGLOMERATE San Miguel Corp. plans to cut its debt stock by up to $400 million by redeeming ahead of maturity half of its Singapore Stock Exchange-listed notes due in 2023.

In a disclosure to the PSE and SGX, the conglomerate said it would make a tender offer for the purchase of as much as $400 million of the $800 million 4.875 percent per annum notes maturing in 2023.

“The offer is made in accordance with the company’s policy to actively manage its balance sheet liabilities and to achieve a lower running cost of debt,” SMC said in a disclosure on Thursday.

Based on the tender offer notice to bondholders, the purchase price will be determined pursuant to a modified Dutch auction at between 92.5 percent and 95 percent of the nominal amount of the notes validly tendered and accepted for purchase. In addition, the purchase price will be increased by 1.25 percent for notes that are validly tendered for purchase by 6 p.m. (London time) on 26 March 2015. This is an offer to provide an early tender premium.

The tender offer commenced on Thursday (March 19) and will end at 4 pm (London time) on 1 April 2015, unless extended by the company. Subject to applicable law, SMC reserves the right ti extend, reopen, amend, waive any condition of, increase or decrease the minimum and maximum purchase price, early tender premium, acceptance amount, extend or amend the tender offer period or terminate the offer at any time.