Metro Pacific Investments Corp. (MPIC), the local unit of Hong Kong-based conglomerate First Pacific Co. Ltd., is planning to issue as much as P6.75 billion worth of 10-year fixed and/or floating corporate notes to institutional investors to fund the acquisition of First Philippine Infrastructure Inc. (FPII).
In a disclosure to the Philippine Stock Exchange, MPIC said the corporate notes issue will be secured by a pledge on shares of the soon to be acquired FPII, which owns 67.1 percent of the Manila North Tollways Corp. (MNTC).
MPIC is acquiring the Lopez family’s 99.84-percent stake in FPII for P12.26 billion or P2.46705 each share.
It has tapped BDO Capital & Investment Corp. as arranger and underwriter for the issuance.
At the same time, the MPIC board approved an increase in the firm’s authorized capital stock from P12 billion to P21.55 billion divided into 20 billion common shares with a par value of P1 per share, five billion Class A preferred shares with a par value of one centavo per share and 1.5 billion Class B preferred shares with a par value of P1 per share.
The board likewise approved the issuance to Metro Pacific Holdings Inc. (MPHI) of up to P1.5 billion common shares out of the increase in capitalization of MPIC or its unissued capital stock
The board also approved a plan to issue up to 900 million common shares coming from MPIC’s capital hike, at a price of P2 per share or an aggregate price of P1.8 billion. Proceeds from the issue will be used to settle a loan taken out by MPIC sometime in June to partially fund its acquisition of additional interests in DMCI-MPIC Water Co., the parent firm of Maynilad Water Services Inc.
The recapitalization plan will set the stage for future fund-raising activities for MPIC’s entry into infrastructure, agriculture, mining, and port operations.