Suntrust Home Developers Inc. has raised P5.6 billion through the issuance of a convertible bond to Summit Ascent Investments Ltd.
The bonds carry a coupon of 6 percent and may be converted on the fifth year of issuance.
Suntrust said subject to agreement by Summit Ascent, the bonds’ maturity may be extended by another five years.
The bonds can be converted to a ratio price P1.80 for every one common share of Suntrust, subject to adjustments.
When fully converted, Summit Ascent will then have 3.11 billion common shares of Suntrust, equivalent to 30.3 percent of the company.
This will dilute the existing Suntrust ownership to 35.69 percent from 51 percent for Fortune Noble Ltd. and 23.79 percent from 34 percent for Megaworld Corp.
It will also reduce the company’s public float to 10.3 percent from the current 14.33 percent.
“However, the conversion rights may be exercised only if it will not cause Suntrust to be in breach of the relevant minimum public float requirement under the relevant PSE rules or circular, which is currently 10 percent,” the company said.
The conversion of the bonds will likewise increase the foreign ownership in Suntrust to 65.95 percent from the current 51.34 percent.