Vista Land raised $125 million from overseas bonds sale

Vista Land & Lifescapes Inc. on Thursday said it raised some $125 million from the additional sale of its guaranteed notes due 2019 in the offshore market.

The company said the debt also carries a yield of 7.45 percent and sold by its unit VLL International Inc., a firm incorporated on the Cayman Islands. VLL International will issue the notes on September 11 at an issue price of 102 percent of their principal amount, plus accrued interest from April 29, 2014, when the first series of the company’s $225-million bonds was sold. The additional debt will form part of the bonds that the company issued in April.

“The net proceeds from the issuance will be used to finance the company’s capital expenditures and for general corporate purposes,” Vista Land said in a statement.

It added that the company already applied with the Singapore Exchange Securities Trading Ltd. for the listing of the said debt. DBS Bank Ltd. acted as the sole global coordinator and sole lead manager of the issuance. The company said it received demand of more than $300 million for the new offer.

Also in April, the company launched a tender offer for its existing $150-million bonds that carried an 8.25-percent rate maturing in 2015. Holders of some $103.76 million worth of bonds, or about 69 percent, accepted its offer. The rest of the bondholders decided to keep their paper until it becomes due.

Vista Land is famous for its affordable-housing brands Camella and Palmera subdivisions, which, at the moment, comprised some two-thirds of the company’s portfolio. Each unit in these subdivisions costs no more than P4 million. The company earlier reported a P2.8-billion net income for the first semester of the year, some 12 percent higher than last year’s P2.5 billion.

Vista Land, controlled by the Villar family, said its revenues grew 14 percent to P11 billion from last year’s P9.7 billion. Reservation sales also grew 10 percent to P25.9 billion.

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A journalism graduate and has covered the Philippine business beat for more than a decade.

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