SEC okays SM Prime ₱100-B bond registration

Published February 12, 2020, 12:00 AM

by manilabulletin_admin


The Securities and Exchange Commission (SEC) has approved the shelf registration of SM Prime Holdings, Inc. for debt securities worth ₱100 billion.

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In a statement, the SEC said the Commission En Banc rendered effective SM Prime’s registration statement and approved the issuance of the corresponding order of registration.

It also approved the permit to sell securities to the public for the initial tranche only, subject to the company’s compliance with certain requirements.

SM Prime intends to initially issue ₱15 billion worth of Series K Bonds and Series L Bonds, with an oversubscription option for a maximum of ₱5 billion, at 100 percent of the face value, based on documents submitted to the SEC.

The bonds will be issued in minimum denominations of ₱20,000 and in multiples of ₱10,000 thereafter. They will be listed and traded in denominations of ₱10,000 on the Philippine Dealing & Exchange Corporation.

The Series K Bonds will mature in five years while the Series L Bonds will be due seven years from the issue date.

SM Prime may redeem in whole the Series K Bonds at 101.0 percent on the 6th and 7th interest payment dates or at 100.5 percent on the 8th and 9th interest payment dates.

Meanwhile, it may redeem the Series L Bonds at 101.0 percent on the 10th and 11th interest payment dates or at 100.5 percent on the 12th and 13th interest payment dates.

SM Prime expects to net ₱14.79 billion from the base offer and ₱4.94 billion from the oversubscription option. The proceeds will primarily finance capital expenditures for new malls and expansion projects.

BDO Capital & Investment Corp., China Bank Capital Corporation, BPI Capital Corporation, East West Banking Corporation, First Metro Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation have agreed to act as joint lead underwriters for the offer.

SM Prime may issue the remaining debt securities under its shelf-registration in tranches within three years from the effective date of the registration statement.