First Philippine Holdings Corp. (FPH), a member of the Lopez Group of Companies, has started to buy back all of its preferred shares totaling P6.3 billion a month after getting a P5-billion loan from SM Group’s BDO Unibank Inc.
A disclosure to the Philippine Stock Exchange on Thursday showed that FPH has started redeeming all of its preferred shares totaling P6.3 billion, divided into P4.3 billion series B preferred shares and P2 billion series A preferred shares.
The transaction was pursued a month after the company announced that it borrowed P5 billion from BDO to partially redeem the preferred shares
In an earlier disclosure to the bourse, FPH stated that some of the proceeds from the P5 billion loan will be used to partially redeem the outstanding P4.3 billion series B perpetual preferred shares.
FPH also said that the proceeds for the loan will be used to partially or wholly finance the prepayment of its outstanding fixed rate notes due on 2014 and 2017, as well as redeem the outstanding P4.3 billion series B perpetual preferred shares callable on April 30, 2013.
It further said that part of the proceeds will be used to fund other general corporate purposes.
BDO Capital and Investment Corp. acted as the sole arranger for the loan deal.
Earlier this year, FPH said that it was embarking to prepay P3.18 billion worth of fixed rate corporate notes, which consisted of seven-year and 10-year notes.
Madelaine B. Miraflor