Rustan’s Supercenters secures P3.5B corporate note facility

Rustan Supercenters, Inc. (RSCI), operator of the Shopwise chain of hypermarkets and Rustan’s Supermarkets, recently secured a P3.5 billion Privately Placed Corporate Note Facility.

The issue exceeded expectations as it was oversubscribed with nine Primary Institutional Lenders tendering an aggregate commitment in excess of the issue amount. The Corporate Notes were offered in three tranches: Tranche A (5-year maturity with fixed interest rate), Tranche B (5-year maturity with floating interest rate) and Tranche C (7-year maturity with fixed interest rate).

Furthermore, the Corporate Note was issued on very favorable terms as it was secured with a negative pledge and at very competitive rates. The proceeds of the Corporate Note will be used mainly for the company’s expansion plans, as well as to refinance existing debts.

The successful transaction was celebrated last May 20 with a dinner held at the Mandarin Oriental Hotel. In attendance were the top executives of all participating financial institutions headed by Walter Wassmer, senior vice president of Banco de Oro, and Eduardo Olbes, Security Bank executive vice president. Representing RSCI was its chairman, Bienvenido Tantoco, Jr. and President Donnie Tantoco.

Donnie Tantoco, president of RSCI, said, “This Corporate Note Facility opens up a new chapter in our company’s history of growth and progress. We are now in a much stronger position to compete in the domestic retailing arena with a reach that spans nationwide. Moving forward, we shall continue to adapt best practices worldwide, innovate, and keep our organization very customer focused.”

Established in 1998, Rustan’s Supercenter pioneered the hypermarket format in the Philippines. It has nine hypermarkets under the Shopwise banner and 22 Rustan’s Supermarkets and Expresslanes.