Del Monte eyes capital securities offering via subsidiary

DEL MONTE PACIFIC Ltd. (DMPL) is seeking more fundraising opportunities, as a subsidiary of its Philippine unit explores a US dollar senior perpetual capital securities offering.

DMPL said in a regulatory filing that Jubilant Year Investments Ltd. has engaged UBS AG as the sole global coordinator, lead manager, and bookrunner to arrange a series of fixed income investor meetings and calls starting Monday.

Jubilant Year Investments is a wholly owned subsidiary of Del Monte Philippines, Inc. (DMPI). The company hinted that a perpetual capital securities offering could follow after selecting UBS AG.

“A Reg S US dollar senior perpetual capital securities offering may follow, subject to market conditions. The issuance will be guaranteed by DMPI and Philippine Packing Management Service Corp.,” DMPL said.

However, DMPL said the announcement “does not constitute or form part of and should not be construed as an offer or invitation or the solicitation of an offer to sell, issue, or subscribe for securities in the United States, Philippines, or elsewhere where such offer or sale would be unlawful.”

UBS AG is incorporated in Switzerland and has branch registered in Singapore.

DMPL logged a $22-million net loss in the first half of its fiscal year that started in May, a reversal of the $19-million net profit a year ago.

The company’s sales improved 2% to $1.2 billion led by higher sales in the US but posted a 28% decline in gross profit to $244 million as a result of higher costs.

On Monday, DMPL shares fell by 3.04% or 18 centavos to P5.74 apiece.