San Miguel Corp., a diversified company with interest in manufacturing, infrastructure development and power, among others, said it is ready to redeem all or parts of the P30 billion in fixed-rate bonds it issued in 2021 should bondholders exercise their put options.
A put option gives a holder of San Miguel bonds the right but not the obligation to sell the bonds to the listed company at a specified date and at a predetermined price. In San Miguel’s case, the price is the accrued interest due at the time of exercise plus the face value of the bonds.
San Miguel told the Philippine Dealing System about its readiness to comply with the redemption provision if bondholders decide to exercise their put options on the six-year bonds. Qualified bondholders are those who are on record April 8.
San Miguel issued the bonds in July 2021 and will mature in 2027. The debt papers carry an interest rate of 3.3832 percent.
Bondholders have between April 8 and May 8 to signify their intent to exercise their put option. The option may be exercised on July 8.
Bond proceeds will be used to repay debt and settle expenses.
