SCREENGRAB from www.sec.gov.ph
MANILA, Philippines–The Securities and Exchange Commission has approved a plan by tycoon George Ty-led conglomerate GT Capital Holdings Inc. to raise as much as P12 billion from a retail offering of long-term bonds.
Based on documents from the SEC, GT Capital was given the go-signal to offer P10 billion in fixed-rate bonds with a tenor of five years and three months, seven years and 10 years. The conglomerate was also given leeway to upsize the offering by another P2 billion in case of strong demand.
The bonds will be issued in scripless form in minimum denominations of P50,000 each and in multiples of P10,000 thereafter. They are intended to be listed on fixed-income trading platform Philippine Dealing and Exchange Corp.
First Metro Investment Corp., BDO Capital and Investment Corp., BPI Capital Corp. and China Banking Corp. were mandated as joint lead underwriters. They each committed to underwrite up to P2.5-billion worth of bonds.
Prior to maturity dates, GT Capital will have the right, but not the obligation, to redeem in whole, but not in part, the seven- and 10-year bonds on every anniversary date or the immediately succeeding banking date. Redemption will also be allowed if payments under the bonds become subject to additional taxes other than the taxes and rates prevailing on issue date.
Except when early redemption is exercised, GT Capital can redeem the bonds at par at 100 percent of face value on maturity date.
Indicative interest rate range on the five-year bonds as of application for registration of securities is a 4.7333-5.233 percent per annum; for seven year-bonds, 4.9439-5.4439 percent and for 10-year bonds, 5.1833-5.6833 percent per annum.
The offer comes amid a very liquid local financial market.
Proceeds from the offering will be used by GT Capital for general corporate requirements which may include prepayment of a total of P3.6 billion short-term loans to Metropolitan Bank and Trust Co., Bank of the Philippine Islands and Banco de Oro Unibank this third quarter of 2014; P6 billon to P8 billion to finance ongoing property projects of property unit Federal Land in Veritown Fort in Bonifacio Global City (Park West, Central Park West and Madison Park West) and Metropolitan Park in Pasay City (Palm Beach Villas, Six Senses 1,2 and 3) this quarter; and P390 million for working capital.
GT Capital has interests in banking (Metrobank), real estate (Federal Land), automotive manufacturing (Toyota Motor Philippines Corp.) and dealership (Toyota Manila Bay Corp. and Toyota Cubao Inc.), insurance (Charter Ping An Insurance Corp. and Philippine AXA Life Insurance) and power generation (Global Business Power Corp).
Originally posted at 2:52 pm | Thursday, July 24, 2014