Posted on June 15, 2015 10:10:00 PM [ BusinessWorld Online ]
By Krista A. M. Montealegre, Senior Reporter
A SUBSIDIARY of Vista Land & Lifescapes, Inc. has launched a $1-billion medium-term note (MTN) program, with the maiden $300-million issuance enjoying strong demand from investors.
In a disclosure to the stock exchange yesterday, the listed homebuilder said VLL International, Inc. (VLLI) raised $300 million from the sale of senior unsecured notes due 2022, the first seven-year tenor notes issued by the company under its debt program.
“The MTN program gives us the flexibility so anytime we can tap the market,” Brian N. Edang, Vista Land head for investor relations, said in a phone interview.
The new notes, which were priced at 7.375%, were issued as part of the company’s liability management exercise aimed at lengthening the maturity of some $450 million worth of debt, the company said.
VLLI on June 2 offered to buy back its $100 million notes due 2018 and $350-million notes due 2019. About 46% or $206 million notes were tendered by creditors and accepted by the company at the end of the tender offer period.
The Vista Land unit will use the proceeds from the $300-million offering for refinancing, general working capital purposes and other general corporate purposes.
Order book reached a record $1 billion, with the property developer attributing the strong demand to its “growing brand name within the Philippines credit space,” it said in a statement.
The new notes were widely distributed with banks accounting for around 52%, fund managers for 40%, and private banks for 8%.
In terms of geography, Asia cornered 91% of the notes while Europe took up 9%. Allocation for Asian offshore investors stood at 51% in line with the company’s objectives of diversifying away from its onshore investor base.
HSBC was hired as sole structuring advisor and, together with DBS Bank Ltd., was joint dealer manager for the tender offer. BDO Capital & Investment Corp. was tapped as domestic dealer manager.
DBS and HSBC acted as joint global coordinators, joint lead managers and joint bookrunners for the new notes issuance while BDO Capital & Investment Corp. and China Banking Corp. were joint domestic lead managers.
Vista Land shares lost three centavos or 0.42% to close at P7.05 apiece yesterday.