Petron Corp., the oil company of Philippine conglomerate San Miguel Corp., said Monday it has decided to repurchase $22.5 million of its $500 million perpetual bonds listed on the Singapore Exchange Securities Trading Ltd.
Earlier this month, Petron announced a tender offer for $50 million worth of principal of its senior perpetual bond that pays 4.6%.
The oil company said the tender offer was necessary to optimize the cost of capital and its cost structure.
Petron said that when the deadline expired on Jan. 12, it received total offers of $37.5 million in bond principals but only accepted $22.5 million.
The San Miguel Corp. oil subsidiary said it will pay $927 for every $1,000 in principal amount, or a total $20.8 million for the accepted bonds. The price was determined through a modified Dutch Auction—also called a descending price auction—procedure.
“No Scaling Factor has been applied to the securities validly tendered pursuant to the tender offer and no competitive offers specifying an offer Ppice that is higher than the purchase price shall be accepted,” Petron said.
After the tender offer, the total outstanding amount of the bond principal is $477.5 million
