The Securities and Exchange Commission (SEC) has approved the P65 billion preferred share offering of San Miguel Corp. which will pay off short-term peso loans, earlier issued bonds as well as investment in airport and airport-related projects.
The SEC also green lighted the Vista Land and Lifescapes Inc. proposal to sell fixed-rate bonds worth P35 billion offered in tranches over three years.
San Miguel will initially offer 400 million preferred shares at P75 apiece to raise P30 billion with an oversubscription option of up to 266.66 million preferred shares worth P20 billion.
As much as P49.62 billion may be raised from the initial tranche on the assumption the oversubscription is exercised in full, San Miguel said.
The Bank of Commerce, BDO Capital and Investment Corp. and China Bank Capital Corp. are joint issue managers of the offer. Asia United Bank Corp., BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp. and Union Bank of the Philippines are joint lead underwriters and book runners.
The preferred shares will be listed and traded on the main board of the Philippine Stock Exchange.
Meanwhile, Vista Land will initially offer P6 billion in fixed-rate bonds forming part of a larger P35 billion shelf registration. This has provision for oversubscription of up to P4 billion.
It estimated net proceeds of P9.83 billion with the oversubscription option fully exercised to refinance maturing obligations and for general corporate purposes.
China Bank Capital, SB Capital and Union Bank of the Philippines as joint lead underwriters and book runners, with China Banking, Trust and Asset Management Group as the trustees.
The fixed-rate bonds will be listed and traded at the Philippine Dealing and Exchange Corp.
