By Neil Jerome Morales (The Philippine
Star) | Updated April 9, 2014 - 12:00am
MANILA, Philippines - The real estate
unit of the Villar family is redeeming $150 million worth of corporate notes
one year ahead of maturity as part of efforts of lower the interest it pays to
creditors.
In a disclosure, Vista Land &
Lifescapes Inc. said its board of directors approved the invitation to holders
of $150.34 million in outstanding notes “to tender any and all of the notes for
purchase by the company.”
The notes, due in September 2015,
carry an interest rate of 8.25 per annum. The tender offer will run from April
7 to April 22.
The board also approved the issuance,
offer and sale, subject to market conditions, by Vista Land International Inc.
(VLLI) of a new series of corporate notes. VLLI is a wholly-owned subsidiary of
Vista Land.
“The proceeds of the new notes will be
used to refinance existing indebtedness of the company, finance its capital
expenditures and/or for general corporate purposes,” Vista Land said.
Vista Land appointed The Hongkong and
Shanghai Banking Corp. Ltd. and DBS Bank Ltd. as joint deal managers, BDO
Capital & Investment Corp. as the domestic deal manager, and DF King
Worldwide as information and tender agent for the sale of new debt papers.
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Last month, the property firm secured
the highest bond score from Credit Rating and Investors Services Philippines
Inc. given its leadership in the low-cost and affordable housing market,
excellent financial performance, strong management team and successful
operating model.
Vista Land is the holding company of
five business units: luxury brand Brittany, upper middle income segment Crown
Asia, Camella Homes, Communities Philippines and condominium builder Vista
Residences. It recently rolled out its socialized housing arm Lumina Homes Inc.
that will sell homes at P1.5 million and below.
Vista Land will introduce to the
market P28 billion worth of projects this year, two-thirds of which are under
middle income brand Camella Homes.
In 2013, the country’s largest
homebuilder launched 35 projects with an estimated value of P26.1 billion, 31
of which are in the low and affordable segment.
Vista Land also allotted P21 billion
for capital expenditures this year, up 22 percent from P17.2 billion in 2013.
Profits of the company jumped 15
percent to a record P5.06 billion last year from P4.38 billion in 2012 as real
estate sales climbed 23 percent to P20.02 billion.
In the past 38 years, the property
firm has completed more than 250,000 housing units in 31 provinces and 64
cities and municipalities around the country.
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