SM Prime’s P100-billion shelf registration gets SEC nod

THE Securities and Exchange Commission (SEC) has approved SM Prime Holdings Inc.’s P100-billion shelf registration, of which the property developer will initially sell some P20 billion.

The SEC approved the company’s registration statement and also the permit to sell the P20-billion bonds during its en banc meeting on February 11.  SM Prime can issue the remaining amount within three years.

SM Prime intends to initially issue P15 billion worth of Series K and Series L bonds as its primary offer, and an oversubscription option for a maximum of P5 billion, at 100 percent of the face value.

The bonds will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. The debt will be listed and traded in denominations of P10,000 on the Philippine Dealing and Exchange Corp. The Series K paper 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 percent on the sixth and seventh interest payment dates or at 100.5 percent on the eighth and ninth interest payment dates.

Meanwhile, it may redeem the Series L Bonds at 101 percent on the 10th and 11th interest payment dates or at 100.5 percent on the 12th and 13th interest payments.

The proceeds will primarily finance capital expenditures for new malls and expansion projects.

BDO Capital and Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.  have been chosen as joint lead underwriters for the offer.