Ayala taps banks for planned notes offer

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, has mandated banks to arrange a series of investor calls for a new round of senior notes issuance and a tender offer.

In a disclosure yesterday, Ayala Corp. said it has tapped BPI Capital Corp, Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Limited, J.P. Morgan (S.E.A.) Limited, Mizuho Securities (Singapore) Pte. Ltd. and UBS AG Singapore Branch as joint lead managers and joint bookrunners.

The banks have been tasked to arrange a series of fixed income investor calls and the offer of dollar-denominated senior fixed-for-life (non-deferrable) perpetual notes, subject to market conditions.

AYC Finance Ltd. will issue the notes. It is a wholly owned subsidiary of Ayala Corp. whose ordinary shares are 100 percent held directly by Ayala Corp, and will be guaranteed by the conglomerate.

“The issuer has also announced a concurrent tender offer of its $400 million, 5.125 percent senior fixed-for-life notes and $400 million, 4.85 percent senior fixed-for-life notes, each subject to a maximum acceptance amount to be announced by the issuer together with the tender offer,” Ayala said.

The tender offer will expire on Sept. 24.

Proceeds from the notes issuance will be used to refinance the conglomerate’s “outstanding dollar-denominated guaranteed undated notes including, among others, through funding of the tender offer and other dollar-denominated obligations.”

“The notes issuance and the tender offer are part of Ayala Corp.’s active liability management exercise that aims to take advantage of capital markets opportunities if and when they arise,” the conglomerate said.

Last May, Ayala successfully raised P10 billion from the issuance of fixed rate bonds.