SM to redeem $250M convertible bonds

SY-led conglomerate SM Investments Corp. plans to redeem $250 million worth of convertible bonds ahead of 2017 maturity as part of its debt management program.

SMIC is exercising its right to call or redeem the 1.625-percent per annum five-year convertible bonds by April 19 this year, the conglomerate disclosed to the Philippine Stock Exchange on Friday.

The conglomerate intends to redeem all these bonds at a redemption price equal to 104.127 percent of the principal amount of all outstanding bonds plus accrued and unpaid interest calculated from and including Feb. 15 this year.

Bondholders who do not intend to exchange these bonds for cash have until April 9 to convert them into equity, the disclosure said. If all bondholders elect to convert their bonds, a total of about 2.3 million common shares of the company will be issued upon conversion of those bonds representing 0.284 percent of the company’s existing common share capital as of March 19 and 0.283 percent of common stocks.

The conversion price for the bonds is P624.625 per share. SMIC shares closed at P902 per share on Friday.

The company intends to complete the delisting of the bonds from the Singapore Stock Exchange as soon as possible following the redemption of the outstanding bonds on April 19.

SMIC, through various operating units, is the dominant player in Philippine banking, real estate and retailing businesses.