Suntrust Home Developers Inc. said it is issuing P6.4 billion in convertible bonds to Summit Ascent Investments Limited (SA Investments) to cover the loan it has received from SA Investments.
SA Investments is an affiliate of Suntrust, having common stockholders owning at least 10 percent in both companies.
In February, the Suncity-controlled Suntrust said it has tapped a $120-million loan from SA Investments carrying an interest rate of 6 percent per annum “subject to the terms and conditions.”
Suntrust is in the middle of developing its casino complex in Pagcor City.
The bonds may be converted on the third year of issuance, extendable to the sixth year of issuance, upon request in writing by Suntrust.
The bonds will be converted to a ratio price P1.65 for every 1 common share of Suntrust.
The conversion will give Summit Ascent 3.88 billion common shares of Suntrust
Suntrust is 51 percent-owned by Fortune Noble, a wholly-owned subsidiary of HSE-listed Suncity Group Holdings Limited (Suncity Group).
Summit Ascent is a wholly-owned subsidiary of Summit Ascent Holdings Limited (SA Holdings), a company listed on the Hong Kong Stock Exchange.
Suncity Group holds approximately 24.74 percent direct and indirect interest in SA Holdings.
