By Myrna M. Velasco
Uy-led Phoenix Petroleum Philippines, Inc. will be issuing new commercial papers (CPs) targeting to raise ₱3.0 billion worth of proceeds to be funneled for debt refinancing.
This is already the third series of its CP issuance based on the ₱10-billion commercial papers program that the oil firm had registered with the Securities and Exchange Commission.
The offer period will be from December 2 to 5; and the issue date will be on December 11, 2019, as disclosed by Phoenix Petroleum to the Philippine Stock Exchange.
According to the company, net proceeds from the issue will likely hover at ₱2.817 billion, on indicative discount rate of 5.2677 percent and assuming that the issue will be fully subscribed.
Phoenix Petroleum noted the revenues fetched from the CPs will be primarily used “to refinance existing short-term loans of the issuer, which were used to finance working capital requirements by the issuer for the regular importation of fuels and lubricants.”
The maturity date of this new series of CP issuance will be 360 days from the issue date or until December 5, 2020; at a maturity value that will be equal to 100 percent of the CPs’ face value.
Denomination will be at P1,000,000 each as a minimum; and will be in multiples of P100,000 thereafter, according to the oil company.
The sole issue manager and underwriter/arranger of the CP offer will be PNB Capital and Investment Corporation; while trustee is Philippine National Bank Trust Banking Group. The registrar and paying agent will be the Philippine Depository & Trust Corporation.
Early this month, the company had also concluded its P7.0 billion worth of series-4 preferred shares issuance, which was reported to be three times oversubscribed.
The shares issue ran from October 21 to 29 and was offered at P1,000 per share under ticker symbol “PNX4.” It closed 3.5-percent higher on its initial trading day on November 8.
Proceeds from the shares float shall be utilized “to reimburse advances to its subsidiaries, including its foreign subsidiaries,” primarily its business presence in other Southeast Asian markets – including Brunei Darussalam, Singapore, Indonesia and Vietnam.
With the company’s growing regional presence, Phoenix Petroleum targets to spread the “Filipino brand” in these overseas markets – quite a fate for an oil firm that started its foothold in Davao.
Phoenix Petroleum President and Chief Executive Officer Dennis A. Uy indicated while the market had already transformed to a great extent through the two-decade liberalization of the Philippine downstream oil sector, the company is still focused on further reinforcing its market presence.
“Phoenix today is an agile and dynamic company that is evolving with the shifting lifestyles of our consumers and the changing operating environment,” Uy said, as he also looked back to the time when Phoenix Petroleum first listed its shares in the stock market in 2007.
Phoenix Petroleum currently has a portfolio of 650 retail stations and its market capitalization is already valued at P15 billion. Beyond its offshore investments, the company is likewise setting expansion in the asphalt sector as well as in the installation of liquefied natural gas (LNG) import facility that will usher in the reset of the Philippine gas market.