A Brown Com­pany OK’s debt-to-eq­uity swap

Business World - - CORPORATE NEWS - Arra B. Fran­cia

A BROWN Com­pany, Inc. is look­ing to con­vert the com­pany’s debt and de­posits amount­ing to P450 mil­lion to eq­uity.

In a dis­clo­sure to the stock ex­change on Thurs­day, the listed hold­ing com­pany of the Brown Group of Com­pa­nies said its board of di­rec­tors ap­proved the con­ver­sion of its debt and de­posits to eq­uity at P1.13 per share. The price is based on the 15-day vol­ume weighted av­er­age price of the com­pany’s shares for the pe­riod end­ing Oct. 11.

The con­ver­sion to eq­uity will trans­late to 221.24 mil­lion shares out of a P250-mil­lion li­a­bil­ity from Brown­field Hold­ings, Inc. as well as 88.5 mil­lion shares each for Value­leases, Inc. and RME Con­sult­ing, Inc. from a P100-mil­lion debt from each of the two firms.

“The trans­ac­tion is in­tended to set­tle out­stand­ing loan obli­ga­tions as well as con­vert the de­posits and at the same time strengthen the balance sheet of the com­pany. This al­lowed the com­pany to raise funds for ex­pan­sion of ex­ist­ing busi­nesses and in­vest­ments in new projects,” A Brown said. —

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