Real estate giant Ayala Land, Inc. is offering to swap its maturing bonds for a new P6.25 billion issuance.
In a disclosure to the Philippine Stock Exchange, ALI said it is planning a public offer and issuance of 5-Year Fixed-rate Bonds which are expected to be listed and traded in the Philippine Dealing & Exchange Corporation.
As part of the offer, ALI intends to extend the invitation to debt securities investors that currently hold outstanding principal amounts of ALI’s 4.625 percent bonds due October 10, 2020.
Holders of the October 2020 Bonds will be provided the option, without any obligation, to settle their subscription (fully or partially) by exchanging at a ratio of 1:1 based on the principal amount of the respective bonds.
All holders of the October 2020 Bonds that purchase the Bonds and opt for the Bond Exchange as a settlement option shall receive the accrued interest, net of applicable taxes, as of the day of issuance and listing of the Bonds, in cash, on the Issue Date.
The issue date is indicatively set on a date prior to the maturity date of the October 2020 Bonds, depending on market conditions, and subject to receipt of regulatory approvals.
Upon issuance, the Bonds will be the fifth tranche of Ayala Land’s Securities Program whose shelf-registration was rendered effective by the Securities and Exchange Commission on April 22, 2019 for the issuance of an aggregate principal amount of up to P50 billion.
The Offer and issuance of Bonds shall be at such price and under such terms and conditions to be determined by the Company’s management in consultation with the Joint Lead Underwriters and Bookrunners.
The Bond Exchange would be the first of its kind in the corporate Philippine Peso debt capital markets. ALI has mandated BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, and SB Capital Investment Corporation to manage the offer.