PETRON Corp. will make a tender offer to holders of the $750-million securities listed on The Stock Exchange of Hong Kong Ltd.
“[Petron] proposes to accept for purchase the securities up to $350 million on the terms and subject to the conditions contained in the Tender Offer Memorandum,” Petron said in a disclosure on Monday.
The offers will be accepted until January 16. No tenders will be valid if received after the expiration deadline, the company added.
“The price payable per $1,000 in principal amount of the Securities will be $1,030, plus any accrued but unpaid distributions and any arrears of distributions,” Petron said.
The tender offer, Petron added, is being made in connection with a concurrent offering of senior perpetual capital securities. No amount was cited.
“The tender offer is part of the company’s active management of its capital structure and is intended to be funded by the issuance of the new securities,” Petron said sans providing details on the maturity or structure of the securities.
During its meeting on Monday, the executive committee of the board of directors of Petron authorized the company to issue US dollar-denominated undated unsubordinated capital securities and conduct a tender offer of its outstanding $750 million 7.5-percent undated subordinated capital securities.
Petron has retained The Hongkong and Shanghai Banking Corp. (HSBC) Ltd.-Singapore branch as the sole global coordinator. It and together with Australia and New Zealand Banking Group Ltd., DBS Bank Ltd., Deutsche Bank AG, Singapore Branch, Standard Chartered Bank and UBS AG Singapore Branch, are the joint dealer managers for the tender offer.
Petron said it also engaged D.F. King Ltd. as the information and tender agent.
The country’s largest petroleum refiner and distributor reported a net income of P11.8 billion for the January-to-September period in 2017, a 58-percent spike from its previous year’s earnings of P7.4 billion.
The improvement was mainly due to higher sales in its Philippine and Malaysian operations, coupled with strong demand for its petrochemical products. The combined sales volumes of its Philippine and Malaysian operations hit 80.2 million barrels in the first three quarters of the year, slightly higher than the 79.3 million sold in the same period in 2016.
Consolidated sales revenues for the first nine months of 2017 reached P313.5 billion, up 27 percent from 2016’s P247.8 billion. Operating income, in turn, grew by 31 percent to P22.1 billion versus the previous year’s P16.8 billion.