SMC buying back $400-M notes in tender offer

Diversified conglomerate San Miguel Corporation is buying back US$ 400 million of its debt through a tender offer for up to half of the US$ 800 million 4.875 percent notes due in 2023.

In a disclosure to the Philippine Stock Exchange, SMC said it is buying back the notes for 92.5 percent to 96.25 percent of the nominal amount of the notes through a modified Dutch Auction bid range.

Under the scheme, the range will be between 92.5 percent and 95.0 percent of the nominal amount of the notes that are validly tendered by the expiration deadline and accepted by SMC for purchase pursuant to such tender.

The purchase price will be increased by 1.25 percent for the relevant notes of each noteholder that are validly tendered for purchase by the early tender deadline and accepted by SMC pursuant to such tender.

The early tender deadline will be 6pm London time on March 26, 2015 while the expiration deadline will be 4 p.m. London Time on April 1, 2015.

Notes purchased by the Issuer pursuant to the Tender Offer will be cancelled and will not be re-issued or re- sold while those which have not been validly submitted and accepted for purchase pursuant to the Tender Offer will remain outstanding.

SMC said the tender offer is made in accordance with its policy to “actively manage its balance sheet liabilities and to achieve a lower running cost of debt.”

SMC has retained Australia and New Zealand Banking Group Limited to act as the sole dealer manager for the tender offer. Lynchpin Bondholder Management is the tender agent for the tender offer.

In 2013, SMC established a medium term note (MTN) program under which it will issue debt securities of up to $2 billion. It later issued US dollardenominated 10-year senior notes.

Proceeds of the notes issue were used for general working purposes of the SMC group and for refinancing, including the repayment of a bridge facility arranged by Deutsche Bank and Standard Chartered Bank. (JAL)