SEC approves P100-B bond program of firm

THE SECURITIES and Exchange Commission (SEC) has given SM Prime Holdings, Inc. the go-signal to issue debt securities worth P100 billion under a shelf registration.

In its meeting on February 11, the Commission En Banc rendered effective SM Prime’s registration statement and approved the issuance of the corresponding order of registration, as well as the permit to sell securities to the public for the initial tranche only, subject to the company’s compliance with certain requirements.

SM Prime intends to initially issue P15 billion worth of Series K Bonds and Series L Bonds, with an oversubscription option for a maximum of P5 billion, at 100% of the face value, based on documents submitted to

the SEC.

The bonds will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. They will be listed and traded in denominations of P10,000 on the Philippine Dealing & Exchange Corp.

The Series K Bonds will mature in five years while the Series L Bonds will be due seven years from the issue date.

SM Prime may redeem in whole the Series K Bonds at 101.0% on the 6th and 7th interest payment dates or at 100.5% on the 8th and 9th interest payment dates. Meanwhile, it may redeem the Series L Bonds at 101.0% on the 10th and 11th interest payment dates or at 100.5% on the 12th and 13th interest payment dates.

SM Prime expects to net P14,794,304,835 from the base offer and P4,937,250,000 from the oversubscription option. The proceeds will primarily finance capital expenditures for new malls and expansion projects.

BDO Capital & Investment Corp., China Bank Capital Corporation, BPI Capital Corporation, East West Banking Corporation, First Metro Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation have agreed to act as joint lead underwriters for the offer.

SM Prime may issue the remaining debt securities under its shelf-registration in tranches within three years from the effective date of the registration statement.