Suntrust and Summit Ascent unit ink deal on bond subscription
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.