Phoenix to raise P3.5 B from debt issue

MANILA, Philippines — Listed independent oil firm Phoenix Petroleum Philippines Inc. is raising at least P3.5 billion from the second tranche of its P10-billion commercial paper program to refinance debt.

The company said it is offering the second series of its commercial paper program on Aug. 5.

The debt paper will have a tenor of 360 days from issuance at a proposed discount rate between seven and 7.5 percent.

If fully subscribed at the 7.5 percent rate, Phoenix Petroleum said it expect net proceeds to reach P3.2 billion.

The firm said proceeds would be used to refinance existing short-term loans that were used to finance working capital requirements related to the regular importation of fuels and lubricants.

Phoenix Petroleum expects to set the final issue price on the discount rate on July 26. Offer period is scheduled from July 29 to 31.

The debt paper will be listed on the Philippine Dealing & Exchange Corp. (PDEx).

The oil firm has hired PNB Capital and Investment Corp. as sole issue manager and arranger, the Philippines National Bank Trust Banking Group as trustee, and the Philippine Depository & Trust Corp. as registrar and paying agent.

The fund raising activity is part of Phoenix Petroleum’s planned registration of up to P10 billion worth of debt papers with the Securities and Exchange Commission.

The offering was assigned an issuer credit rating of PRS Aa minus with a stable outlook by local credit watchdog Philippine Rating Services Corp.

Phoenix Petroleum raised P7 billion from the first tranche last December.