SEC approves 8990, Alsons fundraising bids

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THE Securities and Exchange Commission (SEC) approved on Friday 8990 Holdings, Inc.’s planned issuance of perpetual preferred shares as well as Alsons Consolidated Resources, Inc.’s planned issuance of P2.5 billion in short-term commercial papers.

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Property developer 8990 seeks to raise up to P5 billion from the issuance of 50 million perpetual preferred shares with a par value of P1.00 per share at an offer price of P100 apiece.

The issuance of 50 million preferred shares is the first tranche of its shelf registration of 100 million preferred shares totaling P10 billion. The first tranche will be sold by way of primary offering.

A perpetual preferred share is a type of preferred stock that has no maturity date. Such stock entitles an investor to receive dividends for as long as the listed and issuing company is in business.

“The net proceeds of the Series A Preferred Shares will be used to refinance existing debt obligations of the company and its subsidiary, 8990 Housing Development Corp.,” 8990 told the SEC.

“The net proceeds will be infused into 8990 Housing as equity through the subscription by the company of additional shares in 8990 Housing, which subscription shall be effective upon the availability of the proceeds of the offer,” it added.

8990 tapped BDO Unibank, Inc., Bank of the Philippine Islands (BPI), China Banking Corp. (ChinaBank), China Bank Savings, Inc. (CBS), Asia United Bank Corp. (AUB), and Security Bank Corp. (Security Bank) as the lenders.

The SEC on Friday also ratified Alsons’ shelf registration of commercial papers amounting to P2.5 billion.

The issuance will be made in several tranches within a three-year period, with the first tranche amounting to P500 million.

“Short term loans are availed to partially finance various project costs that are currently being developed. Once these projects under development are implemented, these project costs will be consolidated and funded from longer term funding,” Alsons said.

“No portion of the short-term loans is being used by the company’s subsidiaries,” it added.

Alsons tapped MetroBank Trust Banking Group, and Sterling Bank of Asia Trust Group for the transaction.

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