Petron to repurchase $50-M notes
Petron Corp. is planning repurchase $50 million of its $500-million outstanding senior perpetual capital securities. the country’s lone oil refiner said it intends to make an announcement in the Singapore Securities trading Limited on its proposed tender offer to purchase up to $50 million of its outstanding $500 million senior perpetual capital securities, it said in a filing on Wednesday.
“(Petron) today announces its tender offer to holders of the Securities to tender for purchase by (Petron) for cash such Securities at a price to be determined pursuant to a Modified Dutch Auction Procedure, up to a total aggregate principal amount of $50 million,” Petron said.
Under the Modified Dutch Auction Procedure, Petron will determine the purchase price for the Securities following the expiration of the tender offer. the minimum purchase price is $927 per $1,000 in principal amount of the Securities while the maximum acceptance amount is up to $50 million in aggregate principal amount of Securities.
“(Petron) is undertaking the tender offer to optimize the cost of capital and capital structure. the tender offer also provides liquidity to investors at a premium to market price,” it said.
the deadline for the tender offer is initially set on January 12, 2023 while the payment date is expected on or about January 18, 2023.
Petron has tapped Mizuho Securities Asia Limited as the dealer manager. It also engaged Morrow Sodali Limited as the information and tender agent for the tender offer.
the country’s lone refiner reported in november 2022 that its net income as of end-september grew by 64 percent to P8.2 billion from P4.99 billion recorded in 2021 on account of higher revenues.
It said the combined sales volume from Petron’s Philippine and Malaysian operations as well as the group’s Singapore trading subsidiary grew 37 percent to 80.4 million barrels from 58.8 million barrels in the same period of 2021, reflecting higher fuel demand. In the Philippines, total sales volume jumped by nearly 30 percent.