The offshore unit of Villar-led property developer Vista Land & Lifescapes (VLL) has obtained consent from the majority of its bondholders to tweak the term sheet of $425 million worth of outstanding bonds due 2022.
VLL International sought consent from bondholders 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.
In a disclosure to the Philippine Stock Exchange yesterday, 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 bondholders. The issuer may approach the bondholders through a consent solicitation statement and bondholders who consent to the changes may receive a consent payment.
When VLL International last forayed into the offshore bond market late last year, its $350-million seven-year issuance was priced to yield 5.75 percent per annum, proceeds from which funded the buyback of more expensive debt. VLL International, which is incorporated in Cayman Islands with limited liability, subsequently announced the redemption of costlier notes due 2018 and 2019.
The fundraising in late 2017 was part of the Villar-led property firm’s $1-billion medium-term notes (MTN) program, a type of debt program that allows an issuer to tailor its debt issuance to meet its financing needs. —DORIS DUMLAO-ABADILLA