SEC approves 8990’s preferred share offer

THE SECURITIES and Exchange Commission (SEC) approved on Friday the fund-raising activities of mass housing developer 8990 Holdings, Inc. and Alcantara-led holding firm Alsons Consolidated Resources, Inc. (ACR).

In a memorandum dated Sept. 22, the country’s corporate regulator said it approved the shelf registration of up to 100 million perpetual preferred shares with a par value of P1 each, which may be offered in one or several tranches in a period of three years.

For the first tranche, the mass housing developer will sell to the public up to 50 million perpetual preferred shares priced at P100 apiece, for a total offer size of P5 billion.

The shares will be listed on the main board of the Philippine Stock Exchange.

8990 Holdings looks to net P4.95 billion from the offer, which will be used to refinance the existing debt obligations as well as that of its subsidiary, 8990 Housing Development Corp.

“The net proceeds will be infused into 8990 Housing as equity through the subscription by the company of additional shares in 8990 Housing, which subscription shall be effective upon the availability of the proceeds of the offer,” the company said.

8990 Holdings said it incurred the loans to buy 120 hectares of land across Las Piñas, Quezon City, Manila, Cebu, Bacolod, and Iloilo; and to acquire Primex Corp., which has a land bank of 44 hectares in Meycauayan, Bulacan.

The banks that will be repaid through the capital-raising activity are BDO Unibank, Inc. (BDO), Bank of the Philippine Islands (BPI), China Banking Corp. (CBC), China Bank Savings, Inc. (CBS), Asia United Bank Corp. (AUB), and Security Bank Corp. (SBC).

8990 Holdings’ loans from BDO, BPI, CBC, and CBS will be valid until the fourth quarter of 2017, while the loan from AUB and SBC will be until the first quarter of 2018.

“In the event that less than the estimated net proceeds are obtained, the use of the proceeds will still be for repayment of existing indebtedness with the balance to be repaid by the company using internally generated funds,” the company said.

The listed firm tapped China Bank Capital Corp. as the sole lead underwriter of the offer.

ALSONS FUND-RAISING

At the same time, the SEC also approved ACR’s shelf registration of up to P2.5 billion in commercial papers, the first tranche of which amounts to P500 million. This will be listed and traded at the Philippine Dealing and Exchange Corp.

After deducting fees and expenses, ACR estimated net proceeds to come at P463.52 million, set to be used to finance shortterm loans that will mature in the fourth quarter of 2017.

The banks that ACR owes are Metrobank Trust Banking Group and Sterling Bank of Asia Trust Group.

ACR’s short-term loans were used for projects under development. “Once these projects under development are implemented, these project costs will be consolidated and funded from longer term funding,” the Alcantara-led company said. —