SM to redeem $250-M convertible bonds

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SM Investments Corp. (SMIC) plans to redeem $250-million worth of convertible bonds next month ahead of their 2017 maturity.

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In a disclosure to the stock exchange, SMIC said it will redeem its $250-million convertible bonds, which carry an annual interest rate of 1.625 percent, on April 19 this year.

“The company intends to redeem all . . . of the bonds remaining outstanding on April 19, 2015 at a redemption price equal to approximately 104.127 percent of the principal amount of all outstanding bonds plus accrued and unpaid interest on the bonds, calculated from and including February 15 but excluding the redemption date,” SM said.

The bonds were issued in 2012 and were set to mature in five years. Proceeds of the bond issue were used to refinance existing debt and fund general corporate expenses. Citigroup Inc. and JPMorgan acted as joint bookrunners of the offering.

Last year, SMIC also raised separate amounts of P15 billion and $350 million from bond issuances in May and June, respectively. Proceeds from both fundraisings were used to finance the company’s spending program for 2014.

SMIC’s consolidated net income in 2014 rose 3.6 percent to P28.4 billion from P27.4 billion a year earlier while consolidated revenues climbed 9 percent to P275.7 billion, on strong retail sales and robust revenues from its property segment.

SMIC is the holding firm of the Sy family, having business interests in property (SM Prime Holdings Inc.), banking (BDO Unibank Inc.) and retail (SM Retail Inc.). Other affiliates include China Banking Corp. and casino and entertainment firms Belle Corp. and Premium Leisure Corp.

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