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Sta. Lucia seeks clearance for P5-billion bond sale

Posted on July 14, 2015 10:35:00 PM [ BusinessWorld Online ]
By Krista A.M. Montealegre, Senior Reporter
STA. LUCIA Land, Inc. is seeking regulatory approval to raise up to P5 billion from a debt sale that will mark the developer’s bond market debut later this year.
A prospectus filed with the Securities and Exchange Commission on July 9 showed Sta. Lucia intends to raise P3 billion from an offering of Series A bonds due 2018 and Series B bonds due 2021. The company can opt to sell another P2 billion in case of strong demand.
China Bank was tapped as the issue manager, lead underwriter and bookrunner for the offering.
Net proceeds of as much as P4.90 billion will be used to partly refinance existing debt (P2.935 billion), capital expenditures for land banking and ongoing projects (P1.7 billion) and general corporate purposes (P262 million).
If the oversubscription option will not be availed, the property firm will use net proceeds of P2.94 billion to settle the debt.
“This is our first ever [bond] issuance. Our target is to launch it at the start of the fourth quarter,” Sta. Lucia Chief Financial Officer David M. Dela Cruz said in an interview last month.
Sta. Lucia has an outstanding debt amounting to P3.01 billion from BDO Unibank, Inc., China Banking Corp., Rizal Commercial and Banking Corp., and Asia United Bank. The loans carry interest rates between 4.75% and 6% per annum, maturing between this year and 2018.
Originally incorporated in 1996 as Zipporah Mining and Industrial Corp., Sta. Lucia changed its primary purpose to that of a real estate company in 1996. Its portfolio consists of horizontal and vertical properties across the country, as well as a shopping mall in Cainta -- Sta. Lucia East Grand Mall.
The company’s shares rose two centavos or 2.78% to 74 centavos apiece.
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