Sta. Lucia, BDO Leasing offerings OK’d

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THE Securities and Exchange Commission (SEC) gave the go signal for two companies to raise P30 billion to refinance existing debts and fund future projects.

In an en banc session Tuesday, the SEC approved the P5-billion unsecured fixed rate bonds of property developer Sta. Lucia Land Inc., as well as the P15-billion and P10-billion issues of short-term commercial papers (STCPs) of BDO Leasing and Finance Inc.

The funds to be raised from the issuances will be used primarily to retire existing debts of the two companies.

Sta. Lucia Land
In its approved prospectus, Sta. Lucia plans to raise up to P5 billion from peso-denominated unsecured fixed rate bonds.


The bond issue comprises P3 billion as base issue and P2 billion for overallotment. The bonds are divided into Series A maturing in three years and Series B due 5 years and three months from the issue date.

China Banking Corp. was hired as the issue manager, lead underwriter and bookrunner with co-lead underwriters Amalgamated Investment Bancorporation and BDO Capital & Investment Corp.

Net proceeds of P4.89 billion after fees and taxes, would go to refinance existing secured loans (P3.254 billion), capital expenditures for land banking and ongoing projects for 2015 and 2016 (P1.381 billion), and general corporate purposes (P262 million).

Without the overallotment option, net proceeds will amount to P2.935 billion, which will be used entirely to refinance loans.

As of end-September, the company has P3.254 billion of maturing loans due from late 2015 to 2018. The loans are from BDO Unibank Inc. (P1.036 billion), China Banking Corp. (P1.5 billion), Rizal Commercial Banking Corp. (P323.5 million), Asia United Bank (P250 million), and Malayan Bank (P144.5 billion).

For land banking, Sta. Lucia said the bond issue will partly fund P2.877 billion worth of acquisitions covering 223 hectares. The acquisitions include land parcels in Quezon City (40 hectares), Rizal (18.1 hectares), Batangas (98 hectares), Laguna (10.7 hectares), Iloilo (33.2 hectares), and Davao (23 hectares).

BDO Leasing
BDO Leasing and Finance Inc. is eyeing to generate P25 billion from short-term commercial papers (STCP), mainly to refinance existing commercial papers and promissory notes.

In its approved filing with the SEC, BDO Leasing said it will issue two short-term commercial papers (STCP) worth P10 billion and P15 billion. The issue is part of the company’s tradition to raise STCPs before the year ends to fund its operations for the coming year. It raised P25 billion STCPs in December 2014.

The P10-billion bond issue will go to refinance of existing short-term promissory notes (P6.125 billion) and long-term promissory notes (P1.336 billion), as well as re-lending
(P2.53 billion).

The P15-billion bond issue is expected will partly refinance an existing P13.878 billion of STCPs (P11.878 billion). The rest will also go to re-lending (P3.121 billion).

The P25-billion STCP issuance will be exclusively sold by BDO Capital & Investment Corp. which owns a 1.11-percent stake in BDO Leasing. Both BDO Leasing and BDO Capital are subsidiaries of Sy-led BDO Unibank Inc.

BDO Leasing Vice Chairman and President Roberto E. Lapid earlier said the firm plans to expand to the provinces.

In the first nine months of the year, BDO Leasing booked P387 million in profits, up 2.3 percent from P378 million a year earlier. The company is aiming for a P575-million net income for 2015 due to its expansion in key provinces.

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