The Securities and Exchange Commission (SEC) has approved the registration statement of conglomerate San Miguel Corp. for the shelf registration of fixed-rate bonds worth P50 billion.
Aside from San Miguel’s shelf registration, the SEC also gave its nod to Laguna-based Cirtek Holdings Philippines Corp.’s offer of P1.81 billion in entitlement rights during its en banc meeting on Tuesday.
San Miguel may issue the debt securities in one or more tranches within a period of three years. For the first tranche, the company will offer up to P20 billion worth of six-year fixed-rate bonds due 2027, with an oversubscription option of up to P10 billion.
The listed company expects to net P19.73 billion from the base offer plus P9.87 billion, assuming the oversubscription option is fully exercised. Proceeds will be used to redominate existing dollar-denominated obligations of the conglomerate.
The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing and Exchange Corp.
BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., ING Bank N.V. Manila Branch, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. were picked as the joint lead underwriters and bookrunners for the offer.
Cirtek, meanwhile, will offer entitlement rights to 250 million common shares of the company, 250 million bonus detachable warrants that will be free of charge, and 250 million common shares underlying the bonus detachable warrant, with an exercise price of P4.50 to P7.25 each.
The company expects to net P1.1 billion to P1.73 billion from the offer of the entitlement rights, based on the offer price of P4.50 to P7.25 per share.
Assuming that all the bonus detachable warrants are exercised, the company expects to receive net proceeds of about P1.8 billion based on the exercise price of P7.25.
Proceeds from the offer will be used to refinance existing debt or pay out short-term obligations of the company’s subsidiary, Cirtek Electronics Corp. and finance working capital of units Quintel, CEC and Cirtek Advanced Technologies and Solutions Inc.
The proceeds from the exercise of the bonus detachable warrants will be used to finance the working capital of the subsidiaries.
The offer period will run from July 9 to 21, according to the latest information submitted to the SEC. The shares will be listed and traded on the main board of the Philippine Stock Exchange.
Abacus Capital and Investment Corp. and PNB Capital Investment Corp. were hired as joint issue managers and lead underwriters for the offer.
Cirtek’s board has also approved the issuance of 70 million in cumulative, non-voting, non-participating, non-convertible, redeemable, peso-denominated, perpetual preferred shares. The company said it expects to raise some P3.5 billion from the offer.
In its disclosure, the company said it will sell some 50 million preferred class b-2 shares at an offer price of P50 apiece. The rest of the 20 million shares will be offered as its oversubscription option.
Cirtek’s shares were last traded at P5.68 apiece.
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