Business World

Suntrust and Summit Ascent unit ink deal on bond subscripti­on

- — Keren Concepcion G. Valmonte

SUNTRUST Home Developers, Inc. said it inked an agreement in which a unit of a Hong Kong-listed holding firm will subscribe to the locally listed property developer’s convertibl­e bonds.

It told the stock exchange on Tuesday that the subscripti­on deal was entered into with Summit Ascent Investment­s Ltd., or SA Investment­s, on Sept. 20, subject to the completion of conditions under the agreement.

Suntrust Home Developers will issue the bonds, while SA Investment­s will conditiona­lly subscribe to the bonds equivalent to the former’s loan indebtedne­ss.

In February this year, Suntrust Home Developers and SA Investment­s entered into a loan agreement where the developer borrowed a principal amount of $120 million.

The loan indebtedne­ss will include up to P6.4 billion due under the loan agreement, including the other debt owed by Suntrust under the loan agreement on its maturity date.

According to SA Investment­s’ parent company Summit Ascent Holdings Ltd., Suntrust Home Developers owes SA Investment­s around $122.5 million, which already includes accrued interest.

Summit Ascent and Suntrust Home Developers have common shareholde­rs that own some 10% of both entities.

Suntrust Home Developers is awaiting regulatory approval for the transactio­n.

On Tuesday, its shares at the local bourse went up by 2.65% or four centavos to close at P1.55 each.

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