DOUBLEDRAGON Corp., a property developer diversifying into hospitality, has launched a tap offering on its $160-million senior guaranteed notes maturing in 2025.
The company’s wholly-owned offshore unit DDPC Worldwide Pte. Ltd. has mandated UBS as sole global coordinator, lead manager and bookrunner to arrange a series of fixed income investor calls.
A Reg S tap offering on DoubleDragon’s $160 million bond, which carries a yield of 7.25 percent, may follow.
A tap issue is a procedure that allows borrowers to sell bonds or other short-term debt instruments from past issues. The bonds are issued at their original face value, maturity and coupon rate but are sold at the current market price.
According to the company, any bonds issued pursuant to the tap offering will be consolidated with and increase the outstanding principal amount of DDPC Worldwide’s existing listed maiden US dollar bonds listed on the Singapore Exchange Securities Trading Ltd.
“Use of proceeds (are) intended for the development and construction of Hotel101 overseas projects and for general corporate purposes,” it said.
Value recognized
DoubleDragon is increasing diversification of its funding sources as it prepares itself to grow its business operations inside and outside the Philippines over the long-term. Philippine companies have successfully offered and listed fixed term senior bonds and perpetual securities on the Singapore Stock Exchange in recent years.
The firm said it recognizes the value that diverse funding sources and a broad investor base provide for its growth and expansion, the company said.
The upcoming Hotel 101-Niseko, in Hokkaido Prefecture, Japan, is expected to be patronized by local domestic travelers in Japan and foreign tourists from other countries as well as Filipino travelers who visit Hokkaido for leisure. The site is accessible via a few hours of flight from Manila to the Sapporo New Chitose Airport.
Niseko is famous worldwide for its powder snow. To note, Kutchan Town, where the property is located, is one of the foremost areas of heavy snowfall reaching 13 meters on average with some of the driest and lightest snow in the world.
Because of its northern location, Niseko is internationally-renowned for consistently delivering good falls of light powder snow and a long ski season that stretches from late November until early May. Hokkaido is the northmost island of Japan. During summer, Hokkaido stays cool with average temperatures of about 20 degrees Celsius. It is famous for its stunning nature scenes, panoramic flower fields and hot springs.
