Vista Land unit sets yield on $350-M bond offer

The international unit of leading homebuilder Vista Land & Lifescapes (VLL) has priced its fresh $350-million seven-year offshore bond offering to yield 5.75 percent a year, proceeds from which would be used to buy back more expensive debt.

Subsequently, VLL International, which is incorporated in Cayman Islands with limited liability, announced the redemption of costlier notes due 2018 and 2019, according to a company disclosure to the Philippine Stock Exchange yesterday.

The fresh fund-raising is part of the Villar-led property firm’s $1-billion medium-term notes program, a type of debt program that allows an issuer to tailor fit its debt issuance to its financing needs.

The bonds are unconditionally and irrevocably guaranteed by VLL and its subsidiaries, Brittany Corp., Camella Homes, Crown Asia Properties, Communities Philippines, Starmalls and Vista Residences.

DBS Bank Ltd. and HSBC served as joint lead managers and book runners for this offering.

This regulation “S” offering is a bond issued in the eurobond market for international investors.

Proceeds from this offering will fund the redemption of VLL’s existing 2018 and 2019 bonds, refinance other existing debt and cover other general corporate purposes.

The securities will be issued in denominations of $200,000 and in increments of $1,000 thereafter.

The older securities to be redeemed are the 6.75 percent guaranteed notes due 2018 and 7.45 percent guaranteed notes due 2019.