Emperador provides additional guarantee on $500-M notes


Global Group Inc. (AGG), the listed investment holding firm of tycoon Andrew L. Tan, has announced the provision of an additional guarantee from Emperador Inc. and unit Emperador Distillers Inc. on the $500-million guaranteed notes due 2017 issued by Alliance Global Group Cayman Islands Inc.

The $500 million notes carry an interest rate of 6.5 percent and are guaranteed by AGG.

AGG informed the Philippine Stock Exchange on December 21 that it has given official notice to the holders of the $500 million notes of an additional guarantee by Emperador Inc. and Emperador Distillers Inc. upon their accession as Additional Guarantors.

AGG said the additional guarantees became effective as of December 20, 2016 and were given in connection with the guarantees provided by Emperador Inc. and Emperador Distillers Inc. under a second 370 million euro (P19.25 billion) facility agreement dated December 14, 2016.

This second facility agreement was between Emperador International Limited as borrower, the Additional Guarantors, and The Hongkong and Shanghai Banking Corporation Limited and J.P Morgan Chase Bank N.A., Singapore branch, as lenders.

“Each Additional Guarantor has undertaken, upon becoming an additional guarantor, to perform all the obligations expressed to be undertaken by the Guarantor under the Trust Deed, on a joint and several basis with the other Additional Guarantor,” AGG said in its disclosure.

“The obligations of each of AGG as the original guarantor and the Additional Guarantors are joint and several for the term of the Facility. The Additional Guarantees and the obligations of the Additional Guarantors thereunder shall terminate upon the final repayment date of the Facility or until they are earlier terminated by the Issuer in accordance with the Trust Deed and, if applicable, the Facility,” it added.

The $500 million notes were issued in 2015 to partially settle liquor unit Emperador Inc.’s existing loan facility of 210 million British pounds (P12.97 billion) from The Hongkong and Shanghai Banking Corp. Ltd. (Hong Kong Branch) and JP Morgan Chase Bank N.A. (Singapore Branch).

The loan was availed by Emperador International Limited (EIL) in September 2014, with a tenor of one year and interest pegged at a margin of 1.25 percent per annum, to expand its core alcoholic beverage business globally.

Emperador acquired Whyte and Mackay whiskey in 2014, the brandy and sherry business of Beam Suntory under Beam Spain SL last February, and just this month, Domecq brandies and wines of French distiller Pernod Ricard SA.

Emperador is now the largest brandy firm in the world, selling brands in 100 countries. It is 87.55-percent owned by Tan’s umbrella conglomerate Alliance Global Group Inc. (ticker symbol AGI).


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