San Miguel Corp. told regulators it is issuing a tender for $400 million of its $500 million dollar currency perpetual bonds listed in the Singapore stock exchange.
The bonds were raised by unit SMC Global Power Holdings Corp. in 2020. It had a coupon rate of 5.5 percent and was facilitated by BofA Securities Inc. and Standard Chartered Bank as joint lead managers, DB Trustees (Hong Kong) Ltd. as trustee, and Deutsche Bank AG, Hong Kong branch as paying agent for the securities sale.
SMC Global used the proceeds to refinance loans and support infrastructure projects.
San Miguel is in the middle of a new P60 billion bond sale, divided into an initial P40 billion and another P20 billion to cover the oversubscription option.
Documents for the fundraising were filed with the Securities and Exchange Commission.
The bond issuance has been given a rating of PRS Aaa by credit rater Philippine Rating Services Corp.
San Miguel said it will use the proceeds to partly redeem its series 2H preferred shares, to redeem the series E bonds, to refinance some dollar-denominated debts, and to repay local debts tapped to redeem series A and D bonds.
In particular, P12.3 billion will go to the partial redemption of the 2H preferred shares, P13.15 billion for the redemption of series E bonds, and P14.06 billion for the dollar debts.
San Miguel said the redemption of the series 2H preferred shares will be on December 21, 2022, at a redemption price of P75 per share, while the series E bonds, with a coupon rate of 6.35 percent, will mature by March next year.
San Miguel said it may upsize its allocation for the repayment of dollar debts to P17.1 billion using the oversubscription proceeds for the $300 million facility tapped from MUFG Bank Ltd., Labuan branch in 2018 that will mature by June 22, 2023.
A total of P16.49 billion, including proceeds from the oversubscription option, will go to paying the bridge financing used to redeem series A and D bonds sourced from BDO Unibank Inc., Bangkok Bank Public Co. Ltd., ING Bank Manila branch and Security Bank Corp., which carry an interest of between 2.7 to 4.15 percent.
The bonds are eyed to be listed in the Philippine Dealing and Exchange Corp., San Miguel said.
