Vista Land to redeem $103.76-M IOUs

Holders of about $103.76 million worth of bonds issued by housing developer Vista Land and Lifescapes have offered to sell back the notes to the company ahead of their 2015 maturity.

The debt notes tendered to Vista Land accounted for 69 percent of the $150.34 million worth of securities carrying an interest rate of 8.25 percent a year that the Villar-led property developer had offered to redeem a year ahead of maturity.

In a disclosure to the Philippine Stock Exchange Wednesday, Vista Land said it received valid tender offers from holders of the $103.76 million worth of guaranteed notes before the deadline last April 22.

“The company, in accordance with the terms of the offer, expects to announce whether it will accept any tender offers submitted on or around April 24, 2014,” Vista Land said.

The company earlier appointed HSBC Ltd. and DBS Bank Ltd. as joint dealer managers, BDO Capital and Investment Corp. as domestic dealer manager and DF King Worldwide as information and tender agent for the bond offer.

In May last year, Vista Land sought consent from the holders of the notes due 2015 to amend the terms governing the securities. The notes issued in 2010 were unconditionally and irrevocably guaranteed by its subsidiaries Brittany Corp., Camella Homes Inc., Crown Asia Properties Inc., Communities Philippines Inc. and Vista Residences Inc.

Vista Land wants to take the opportunity to issue new notes and buy back and refinance the old notes due 2015. By refinancing these notes, Vista Land seeks to spread out maturities and lower its financing costs.

Vista Land is planning to debut on the local bond market with an offering of as much as P5 billion, an exercise already approved by the Securities and Exchange Commission (SEC).

The maiden domestic bond offering is part of an overall strategy to diversify its sources of funding. The proceeds will partly finance the commercial developments of its subsidiaries. Doris C. Dumlao