LBC Express Holdings Inc. has completed the full settlement of its outstanding obligations with CP Briks Pte. Ltd., covering the remaining principal amount of USD39 million plus accrued interest under a secured convertible instrument issued in August 2017.
With this settlement, CP Briks has released its pledge over the shares of LBC Express Holdings Inc. in its operating arm, LBC Express, Inc., marking the full extinguishment of the company’s convertible debt.
Originally issued under a Convertible Instrument Purchase Agreement dated June 20, 2017, the seven-year, USD50 million secured convertible instrument was designed to fund the parent company’s business expansion, including capital expenditures and working capital.
The bond was convertible into 192.3 million common shares of LBC Express Holdings at P13.00 per share, with terms allowing redemption by CP Briks starting 30 months after issuance, with an internal rate of return ranging from 10 percent to 13 percent.
The hybrid bond contained both liability and embedded derivative components. A partial redemption of USD11 millionwas executed on December 2022, at USD19.33 million, generating a gain of P7.58 million.
The full repayment strengthens LBC’s financial position and reduces its long-term liabilities, aligning with efforts to optimize capital structure and investor confidence.
