SMC issuing up to P10 billion notes for debt refinancing

MANILA, Philippines — San Miguel Corp. (SMC) is issuing up to P10 billion two-year fixed-rate notes at an interest rate of 5.25 percent on Friday.

In a disclosure to the Philippine Stock Exchange yesterday, SMC said the move is pursuant to the authority of its board of directors to issue peso-denominated corporate notes of up to P20 billion.

“The two-year fixed-rate notes will be issued on May 25, 2018 with a total aggregate amount of P10 billion with a fixed interest rate equivalent to 5.25 percent per annum,” SMC said in its final information memorandum on the offering.

Furthermore, proceeds of the P10 billion offering would be used for refinancing existing obligations including the possible redenomination of its US dollar-denominated debt and investments of its existing subsidiary in its various businesses.

SMC has businesses across a wide variety of industries such as food and beverage through San Miguel Food and Beverage; petroleum through Petron Corp; power through San Miguel Global Power Holdings Corp; infrastructure through SMC Infrastructure; liquor through Ginebra San Miguel Inc.; packaging through San Miguel Yamamura Packaging and the flagship beer business through San Miguel Brewery.  

The company will issue the notes in minimum denominations of P50 million each and in integral multiples of P5 million thereafter.

Joint lead underwriters and bookrunners are BDO Capital & Investment Corp. and BPI Capital Corp., while co-lead managers are the Development Bank of the Philippines, RCBC Capital and SB Capital and Investment Corp. 

The notes will be listed on the Philippine Dealing & Exchange Corp. (PDex), the country’s fixed income exchange.

SMC started 2018 strong, posting a net income growth of 13 percent to P15.6 billion in the first quarter from P13.8 billion a year ago.