The Securities and Exchange Commission has approved a plan by San Miguel Purefoods Co. Inc. to offer as much as P15 billion worth of preferred shares to investors, proceeds from which will be used to refinance older and costlier outstanding preferred shares.
Based on a document from the corporate regulator, Purefoods was given the authority to offer 10 million preferred shares at P1,000 per share.
In case of strong demand, Purefoods can upsize the offer by five million shares, adding P5 billion to the base offer of P10 billion.
Without exercising the oversubscription option, net proceeds from the offering are estimated to reach P9.91 billion after underwriting fees, commissions and expenses are paid out to underwriters.
The company will use the proceeds to redeem P15 billion worth of preferred shares issued in 2011.
These shares carry a dividend rate of 8 percent per annum, plus a provision to increase the rate after five years. The company earlier amended the terms of the old preferred shares, giving it leeway to redeem these instruments after three years.
Mandated as joint issue managers, underwriters and bookrunners for this offering are BPI Capital Corp., China Banking Corp., RCBC Capital Corp., SB Capital Investment Corp., and Standard Chartered Bank.
Doris C. Dumlao