Ayala Corporation, one of the largest conglomerates in the Philippines, is planning to offer Regulation S US Dollar-denominated senior fixed-for-life perpetual notes to retire at least $800 million worth of older US Dollar-denominated debt.
In a disclosure to the Philippine Stock Exchange, the firm said it has mandated investment banks to arrange a series of fixed income investor calls and the offer of the notes subject to market conditions.
It has tapped BPI Capital Corporation, Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Limited, J.P. Morgan (S.E.A.) Limited, Mizuho Securities (Singapore) Pte. Ltd. and UBS AG Singapore Branch as Joint Lead Managers and Joint Bookrunners.
The Notes will be issued by AYC Finance Limited, a wholly owned subsidiary whose ordinary shares are 100 percent held directly by AC, and will be unconditionally and irrevocably guaranteed by AC.
AYC has also announced a concurrent tender offer of its $400 million 5.125 percent senior fixed-for-life notes and $400 million 4.85 percent senior fixed-for-life notes.
Each will be subject to a maximum acceptance amount to be announced by the Issuer. The Tender Offer will expire at 4 p.m. (London Time) on Sept. 24, 2021.
Proceeds of the Notes issuance will be used to refinance the AYC’s outstanding US Dollar-denominated guaranteed undated notes including, among others, through funding of the Tender Offer, and other US Dollar-denominated obligations.
“The Notes issuance and the Tender Offer are part of AC’s active liability management exercise that aims to take advantage of capital markets opportunities if and when they arise,” Ayala said.