Posted on November 21, 2014 09:22:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter
THE SECURITIES and Exchange Commission (SEC) approved Filinvest Land, Inc.’s up to P7 billion bond offering, which will be used to refinance debt and bankroll capital expenditure in the last few months of this year through 2015.
In a text message, SEC Secretary Gerard M. Lukban said the transaction was approved during the commission’s en banc meeting on Thursday.
The primary offer is P5 billion worth of unsecured fixed-rate peso retail bonds, and an additional P2 billion to cover oversubscription, the company said in its revised registration statement filed with the SEC on Wednesday.
“The net proceeds of the issue shall be used for the repayment of debt and to partially finance its capital expenditure requirements for the 4th quarter of 2014 and in 2015,” an SEC memorandum dated Nov. 5 read.
The same document showed that a total of P4.95 billion will be allotted for debt refinancing, while P2.2 billion will go to capital expenditure.
The seven-year bonds will carry an interest between 5.2097% and 5.5597% annually. The ten-year bonds, meanwhile, will have an interest between 5.6303% and 5.9803% per annum.
BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. were mandated as joint issue managers, bookrunners and lead underwriters.
In a separate disclosure to the Philippine Stock Exchange on Friday, the Gotianun-led property developer said it completed on Thursday the payment of its P4.5 billion fixed-rate bonds, with a tenor of five years and one day.
FLI said that debt was part of the P5 billion fixed-rate bonds it issued on Nov. 19, 2009, which matured on Thursday.
FLI, a unit of Filinvest Development Corp., said its net income rose 19% to P2.89 billion in the nine months ending September, while revenues climbed 27% to P11.82 billion.
Its shares gained five centavos or 3.21% to close at P1.61.