Mindanao Times

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.

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