By James A. Loyola
The Securities and Exchange Commission (SEC) has approved the planned public offering by San Miguel Food and Beverage, Inc. (SMFB) of ₱15 billion worth of fixed-rate bonds.
The food and beverage flagship of San Miguel Corporation intends to offer the fixed-rate bonds in two series at face value.
The Series A Bonds will mature in five years while the Series B Bonds will be repaid seven years from the issue date.
The bonds shall be issued in minimum denominations of ₱50,000 each, and in integral multiples of ₱10,000 thereafter.
They will be listed and traded in denominations of ₱10,000 on the Philippine Dealing & Exchange Corp.
The net proceeds from the offer – estimated at ₱14.81 billion – shall be used to fund the redemption of the outstanding 15 million Series 2 Perpetual Preferred Shares of SMFB to be redeemed on March 12,2020 at a redemption price of ₱1,000 per share.
SMFB may redeem in whole the outstanding Series A Bonds at 101.0 percent on the third year or at 100.5 percent on the fourth year. For the Series B Bonds, the company may redeem the bonds at 101.0 percent on the fifth year or 100.5 percent on the sixth year.
BDO Capital & Investment Corp., BPI Capital Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation have agreed to act as joint lead underwriters and bookrunners for the offer.