GT Capital sells P12B in bonds

GT Capital Holdings Inc. of tycoon George Ty rolled out Friday a public offering of up to P12 billion in fixed-term bonds in series of five-, seven- and 10-year tenors.

In its final prospectus, GT Capital said the first series, with a term of five years and three months, would carry a fixed interest rate of 4.7106 percent a year while the seven-year series was priced to yield 5.1965 percent a year. The 10-year series will carry an interest rate of 5.625 percent yearly.

The public offering will run until July 31 and the bonds are expected to be issued on Aug. 7.

The base offer is P10 billion but GT Capital has the option to increase the issuance by as much as P2 billion.

Proceeds will be used to refinance outstanding loans, partially fund projects and cover working capital requirements.

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.

The issue manager is First Metro Investment Corp. (FMIC) while joint lead underwriters are FMIC, BDO Capital and Investment Corp., BPI Capital Corp. and China Banking Corp. Mandated as participating underwriters are Maybank ATR Kim Eng Capital Partners Inc., PNB Capital and Investment Corp. and United Coconut Planters Bank.

The bonds will be issued in scripless form in minimum denominations of P50,000 each and in multiples of P10,000 thereafter. The securities are intended to be listed on fixed-income trading platform Philippine Dealing and Exchange Corp. Doris C. Dumlao