Villar-led VLL International Inc., an affiliate of listed firm Vista Land and Lifescapes Inc., has executed a subscription agreement with its fund managers for the float of $170 million in the re-opening of its new notes.
The company said it signed an agreement with Credit Suisse (Singapore) Limited, DBS Bank Ltd. and The Hongkong and Shanghai Banking Corporation Ltd., as managers for the said offshore bond float.
The new notes will form a single series with the company’s existing $200 million, 7.25 percent senior guaranteed notes due 2027, which will now have a total issuance size of $370 million.
The new notes will be issued at a re-opening yield of 6.5 percent, plus accrued interest from January 20, 2021 to May 17, 2021, and a re-opening price of 103.752 percent.
“The notes are guaranteed by VLL and its subsidiaries namely Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vistamalls Inc. and Vista Residences Inc.,” the company said in a disclosure.
“The proceeds of the notes issue will be used to refinance existing indebtedness, purchase, develop, construct, or improve assets, property and equipment, and for general corporate purposes.”
The said notes issuance is part of the company’s $2-billion medium term note program.
Vista Land said its income in the first quarter fell 14 percent to P2.1 billion from last year’s P2.43 billion, mainly due to higher interest expense.
“Coming from 2020, our preliminary first quarter headline numbers this year are quite encouraging. The company will continue with its digital innovations to efficiently and to safely serve its clients and customers,” Manuel Paolo A. Villar, the company’s president and CEO said.
He said the company expects to report total revenues of approximately P8.7 billion for the period, or about 12 percent lower than last year’s P9.9 billion, with real estate revenues at approximately P6.3 billion representing a decrease of approximately 13 percent year-on-year, and leasing income estimated at P2 billion representing a decrease of approximately 9 percent.
The company said its reservation sales continued to rise in the first quarter, registering at approximately P16.1 billion or an estimated 4-percent increase from the first quarter last year and an estimated 14-percent increase since the fourth quarter of 2020.
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