Holders of C&P Homes FRNs approve swap deal

Mass housing developer C&P Homes Inc. said at least 90 percent of the holders of its floating rate notes (FRNs) have agreed to swap them for a combination of dollar-denominated long-term notes and new shares of the company.

C&P Homes’ offer is part of a restructuring plan approved by its board of directors on Feb. 9 which provided for the purchase of all the remaining outstanding FRNs issued by its wholly-owned unit C&P Homes International Ltd.

C&P Homes said the FRN holders who gave their go-signal to the plan, accounted for $126.06 million of the outstanding FRNs.

Under the plan, C&P Homes will issue $46.77 million worth of 15-year long-term notes and a total 749.15 million new shares of stock at P8 per share to the FRN holders who accepted the exchange offer.

The FRNs, which are fully guaranteed by C&P Homes, totaled $133.47 million as of end-December last year.

Holders of FRNs who did not accept the offer will be repaid in cash on a discounted basis.

C&P Homes chief financial officer Estrellita Tan said the transaction would drastically reduce the company’s debt and significantly strengthen its balance sheet, which, in turn, would give C&P Homes the flexibility to aggressively pursue various strategic options in the near- to medium-term.

"The finalization of this debt rationalization plan is a significant milestone in the history of our company – with our debt problems completely addressed, we are now poised to undertake strategic options that will benefit our various stakeholders, including the general public that we serve," said Maribeth Tolentino, C&P Homes president and chief executive officer.

C&P Homes has earmarked P1 billion this year for the development of more housing units as it seeks to further strengthen its dominant foothold in the socialized housing industry.

The company will launch 26 new projects located in eight cities and provinces — Quezon City, Makati City, Las Piñas City, Parañaque City, San Fernando in Pampanga, General Santos City in South Cotabato, Laoag City in Ilocos Norte, and Naga City in Camarines Sur.

C&P Homes conducts significantly all of its operations through two wholly-owned subsidiaries Household Development Corp. and Palmera Homes, Inc., which are engaged in the development and marketing of affordable homes carrying principally the brand name Camella.

Its sister companies include CrownAsia, the country’s largest builder of middle-income homes, and Brittany Corp., which has carved out a signature maverick identity for creating innovative homes for the affluent.

In its three decades of operations, C&P Homes has provided affordable homes for more than 150,000 families.