Property developer Ayala Land Inc. (ALI) said on Wednesday that it will offer some P6.25 billion in five-year fixed-rate bonds and has offered its holders of October 2020 paper to exchange their holdings with the new debt.
In its disclosure, the company said it is inviting debt holders of the company’s bonds maturing on October 10, which has a yield of 4.625 percent, to exchange their holdings with the new offering.
According to Ayala Land, “holders of the October 2020 bonds will be provided the option, without any obligation, to settle their subscription [fully or partially] by exchanging at a ratio of 1:1 based on the principal amount of the respective bonds.”
All holders of the October 2020 bonds who purchase the bonds and opt for the bond exchange as a settlement option shall receive the accrued interest, net of applicable taxes, as of the day of issuance and listing of the bonds, in cash, on the Issue Date, which is indicatively set on a date prior to the maturity date of the October 2020 Bonds, depending on market conditions, and subject to receipt of regulatory approvals, Ayala Land added.
Upon issuance, the new bonds will be the fifth tranche of Ayala Land’s P50 billion 3-year shelf registration that regulators approved on April 22, 2019.
The offer and issuance of bonds shall be at such price and under such terms and conditions to be determined by the company’s management in consultation with the Joint Lead Underwriters and bookrunners. The bond exchange would be the first of its kind in the corporate Philippine peso debt capital markets, Ayala Land said.
The company has mandated BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and SB Capital Investment Corp. to manage Ayala Land’s offer. VG Cabuag