VILLAR-LED Vista Land and Lifescapes, Inc. said on Tuesday it successfully priced $350 million worth of bonds due 2024 through its wholly-owned subsidiary VLL International, Inc.
Vista Land said it would issue the $350 million bonds on November 28. Proceeds will be used to refinance its existing debt notes that are set to mature in 2018 and 2019.
Strong response from investors enabled Vista Land to set a fixed interest rate of 5.75 percent, or 37.5 basis points lower than their earlier guidance of around 6.125 percent. “This is the lowest coupon achieved by the company on the bond market,” it said.
“The proceeds from the issuance will be used primarily for refinancing. On November 10, the company announced a liability management exercise for the tender offer of its outstanding $51.8 million 6.750 percent bonds due 2018 and $180.8 million 7.450 percent bonds due 2019,” the firm told the Philippine Stock Exchange.
The final orderbook reached $1.7 billion, making the transaction nearly five times oversubscribed, Vista Land said, adding it is also the largest size raised by the company on a primary issuance.
“The ability of Vista Land to price much tighter is a testament to the credit profile of the company, and the confidence it enjoys from offshore investors who continue to support their issuances,” HSBC President and Chief Executive Officer Wick Veloso said.
HSBC and DBS Bank Ltd. were tapped as the joint lead managers, bookrunners, and joint dealer managers for the issuance.
“The new bond issue, coupled with a liability management transaction, allows Vista Land to reduce our short term refinancing risk, extend our maturity duration and realize interest expense savings,” Vista President and CEO Manuel Paolo Villar said.
“It also provides us an opportunity to continue diversifying our sources of funding, ensuring we continue to build key relationships not only with our investors onshore, but also with investors from Europe and Asia,” he added.
Vista Land is a property developer led by former senator and magnate Manny Villar.