The bonds will mature in seven years but with a put option after five years. The yield was lowered to 8.45 percent from an initial 8.5 to 8.625 percent.
The company was originally looking to raise $100 million but strong demand prompted it to increase the issue size.
The bond issue, lead managed by Credit Suisse First Boston Corp. and JPMorgan Chase & Co., will be the first international bond from Asia to be priced this year.
Proceeds from the issue will be partially used to repay URC’s outstanding $53 million notes when they mature in December 2006.
The bond was assigned a "BB" rating by Moody’s Investor Service. In assigning the rating, Moody’s has taken into account URC’s strong market position in the Philippines’ branded consumer food industry supported by diversified product portfolio, well-established brand equity, product innovation and nationwide distribution network.
Moody’s also considered URC’s exposure to adverse currency movements since its revenues are primarily earned in pesos but a significant portion of its input costs and debt is denominated in dollars.
As of end-September this year, URC has a liquid reserve of P15.1 billion in the form of US dollar marketable securities. The quality of this investment portfolio has also improved with approximately 76 percent of investment-grade fixed income securities, Moody’s said.
However, Moody’s expects that the company would fund new potential acquisitions by liquidating part of its investment portfolio.
URC is one of the largest branded consumer food companies in the Philippines. It also has production facilities in Thailand, Malaysia, China, Indonesia, and Vietnam and sales/marketing offices in HK and Singapore.
It is the market leader in snack foods, candies, chocolates, biscuits, day-old chicks and fish feeds.
URC is also engaged in Agro-industrial products, sugar milling, flour milling and packaging businesses in the Philippines.
The company is accelerating its international expansion this year as it gears to be a major regional branded food company in Asia.