VLL noteholders ok change in covenant

Vista Land chair Manuel B. Villar. FILE PHOTO

The offshore unit of Villar-led property developer Vista Land & Lifescapes has obtained consent from bulk of its noteholders to tweak the term sheet of $425 million worth of outstanding debt paper due 2022.

VLL International sought consent from bond-holders to modify certain terms and conditions of the notes to align them with the term sheet of a new series of notes amounting to $350 million issued last November 2017.

In a disclosure to the Philippine Stock Exchange on Friday, VLL said noteholders controlling 90.12 percent “voted in favor of the amendments.”

The $425 million senior guaranteed notes are “unconditionally” and “irrevocably” guaranteed by VLL and its subsidiaries Brittany Corp., Camella Homes, Crown Asia Properties, Communities Philippines, Manuela Corp., Masterpiece Asia Properties, Starmalls and Vista Residences.

The seven-year notes – issued by VLL International in 2015 and reopened to the market in early 2016 – carry an annual interest rate of 7.375 percent.

Consent solicitation, a common practice in the bond market, is usually sought if the original terms of the issuance are no longer in the best interest of the issuer and bond holders. The issuer may approach the bond holders through a consent solicitation statement and bondholders who consent to the changes may receive a consent payment.