VLL International Inc., a subsidiary of Villar-led Vista Land and Lifescapes Inc., has raised $300 million (P13.6 billion) via a seven-year corporate note issue on Thursday, a part of the company’s $1-billion medium-term note program.
The company offered $300 million of senior unsecured notes due 2022 at 7.375 percent interest rate, the Vista Land said in a statement Monday. The plan is to extend its US-dollar notes due 2018 and 2019.
Last week, VLL International also offered to buy back $100 million of notes due 2018 and $350 million due 2019.
At the end of the offer period, a total of $206.7 million notes tendered by noteholders were accepted by the company.
“Proceeds from the [$300-million note] offering will primarily be used for refinancing, general working capital purposes and other general corporate purposes,” the statement read.
The notes were taken up by banks (52 percent), fund managers (40 percent) and private banks (8 percent).
Asian investors cornered 91 percent of the offer and 9 percent by European investors. Asian offshore participation reached a combined allocation of 51 percent, which reflects the company’s objective of diversifying its onshore investor base.
HSBC was the advisor for the deal and was joined by DBS Bank Ltd. in managing the transaction, while BDO Capital & Investment Corp. was the domestic deal manager.
DBS Bank Ltd. and HSBC acted as joint global coordinators, joint lead managers and joint bookrunners for the $300-million notes issue, while BDO Capital and China Banking Corp. were appointed as joint domestic lead managers.
Vista Land’s credit space already logged $1 billion in its order book, the largest international notes demand for a Philippine company.
The company earlier said they are programming up to P25.1 billion in capital expenditure this year, of which P3.9 billion is for land acquisition, P5.5 billion for land development, and P15.7 billion for construction.
Vista Land is primarily engaged in real estate business, mostly low and middle cost segments, and has been of late been working to diversify into the hotel business.