Phoenix Petroleum eyes up to P5-billion notes to refinance debts, fund capex

MANILA, Philippines - Phoenix Petroleum Philippines Inc., one of the most profitable independent oil players in the country, is planning to issue up to P5 billion notes to refinance its debts and fund its capital expenditures.

In a disclosure to the Philippine Stock Exchange, Phoenix said the issuance was approved by its board in a recent meeting.

“We would like to announce that the board of directors has approved the issuance of at least P3 billion with a maximum of P5 billion in corporate notes on a clean basis for purposes of refinancing existing secured debt and capital expenditure, among others,” Phoenix said.

The oil firm’s notes are seen to carry maturities of five and seven years.

Phoenix said it has appointed as joint lead managers BPI Capital Corp., Hongkong and Shanghai Banking Corp., and Development Bank of the Philippines, while Land Bank of the Philippines and Chinatrust (Philippines) Commercial Bank Corp. are the co-lead managers.

“The notes shall be sold via private placement to no more than 19 qualified buyers,” it said.

Phoenix posted revenues of P6.1 billion in the first three months, this year, 122 percent higher from P2.75 billion in the same period last year.

Sales volume also increased 97 percent during the period but the company did not provide additional figures.

“The (sales) growth comes from the expansion of or retail network and increase in sales from retail and commercial accounts,” it said.

Phoenix now operates 178 stations as of end-March, from 161 stations at the end of 2010. Around 135 stations are located in Mindanao, six in Visayas, and 37 in Luzon.

“Based on its first quarter performance, the company is confident of hitting its target of additional 80 stations for the year,” it said.

Phoenix is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities, and allied services.