The Securities and Exchange Commission (SEC) said it has green-lighted SM Prime Holdings Inc.’s P100 billion shelf-registered bond issuance.
“In its meeting on February 11, the Commission En Banc rendered effective SM Prime’s registration statement and approved the issuance of the corresponding order of registration, as well as the permit to sell securities to the public for the initial tranche only, subject to the company’s compliance with certain requirements,” the SEC said.
SM Prime earlier said it looks to raise P20 billion in new funding with the issuance of five- and seven-year bonds out of the P100 billion shelf-registered bonds.
Carrying the code “series K” and “series L,” the bonds will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. It will be listed with the Philippine Dealing & Exchange Corp.
The SEC said as part of the planned bond sale, SM Prime reserves the right to redeem the series K bonds at 101.0 percent on the 6th and 7th interest payment dates or at 100.5 percent on the 8th and 9th interest payment dates.
The series L bonds may be redeemed at 101.0 percent on the 10th and 11th interest payment dates or at 100.5 percent on the 12th and 13th interest payment dates.
SM Prime expects to net P14,794,304,835 from the base offer and P4,937,250,000 from the oversubscription option. The proceeds will primarily finance capital expenditures for new malls and expansion projects.
BDO Capital & Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. will serve as joint lead underwriters for the offer.
SM Prime may issue the remaining debt securities under its shelf-registration in tranches within three years from the effective date of the registration statement.
