AC cited Sec. 10.1 of the Securities Regulation Code which provides that the requirement of registration shall not apply to the sale of any security if the transaction involves less than 20 persons.
The company will issue the five-year redeemable preferred shares to pay maturing obligations. The shares, which will be sold to institutional investors at P5 per share, are non-convertible into common shares and have no voting rights.
AC said the shares are redeemable in full via payment in cash of 100 percent of issue price at the end of the fifth year from issue date.
The company has $150 million worth of obligations maturing in 2004 and 2005.
AC’s debt reduction and refinancing program is going well and the company continues to receive attractive proposals for credit facilities from several financial institutions.
AC is the holding company of the Ayala Group of Companies, the largest conglomerate in the Philippines. Among its core businesses are real estate and hotels, financial services, telecommunications, and international operations.
Among its subsidiaries include Ayala Land Inc., Globe Telecom, Bank of the Philippine Islands, Manila Water Co. Inc., Integrated Microelectronics Inc., iAyala Co. Inc., Ayala Automotive Holdings Corp., and Ayala International Pte. Ltd.
The group’s strategy has been anchored on maintaining its commitment to its business activities in the Philippines and to explore possible regional initiatives on a selective basis to enhance financial and operational capabilities and global reach.