SHOPPING mall operator SM Prime Holdings Inc. (SMPH) on Tuesday has set the interest rates for its five-seven- and 10-year P30 billion retail bonds, in which the company priced higher than the secondary market rates.
In a statement, SMPH said it its Series P, 5-year retail bond is priced 5.6141 percent due on 2027. It priced its Series Q, 7-year retail bond due on 2029 at 6.1175 percent and the Series R, 10-year retail bond due on 2032 at 6.5432 percent.
The said debt will have a spread of between 44.59 basis points and 56.67 basis points from the secondary market rates.
SMPH is selling a principal amount of P15 billion of the Series P, Q and R bonds, with oversubscription option of an additional P15 billion.
These retail bonds will be offered from April 7 to 13.
BDO Capital and Investment Corp. and China Bank Capital Corp. were picked as joint issue managers.
The two banks along with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. are also the deal’s joint bookrunners and joint lead underwriters.
“SMPH will use the proceeds of these latest retail bonds issuance to pursue the expansion plans set for the company’s property portfolios, including malls, residential developments, offices, and hotels, which will drive further growth to the Company as well as to the communities we serve,” SMPH CFO John Nai Peng C. Ong said.
The issuance is the fourth tranche under the company’s P100 billion shelf registration of fixed-rate bonds approved by the Securities and Exchange Commission on February 2020 .
Earlier, Broker Regina Capital Development Corp. advised to trade the range on the stock of SM Prime “as the bears won over the past trading days causing the stock to close lower last week.”
“However, indicators are not giving strong clues as to where SMPH is truly headed yet,” it said. “What’s clear is that SMPH is likely to linger around P37.30 to P38.20.”
SM Prime shares closed last week at P37.90 apiece. The shares of SMPH closed on Tuesday at P38 apiece, down P0.15 from the previous trade.