Vista Land issuing $225-M notes for debt payments, expansion

MANILA, Philippines - Property firm Vista Land & Lifescapes Inc., fresh from retiring $103 million in debts, is raising more than $200 million through corporate notes.

In a regulatory filing, the real estate unit of the Villar family said its subsidiary VLL International Inc. will issue $225-million senior guaranteed notes to support debt payments and expansion projects.

“The company’s wholly-owned subsidiary VLL International Inc. has executed a subscription agreement with the joint bookrunners and joint lead managers DBS Bank Ltd. and The Hongkong and Shanghai Banking Corp. Ltd. for the offer, sale and issuance of notes,” Vista Land said.

The five-year corporate notes will carry an interest rate of 7.45 per annum. It is guaranteed by parent firm Vista Land and subsidiaries Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc. and Vista Residences Inc.

“The proceeds of the notes issue will be used to refinance the company’s existing indebtedness, partially finance its capital expenditures and for general corporate purposes,” Vista Land said.

Vista Land allotted P21 billion for capital expenditures this year, up 22 percent from P17.2 billion in 2013.

The property firm will introduce to the market P28 billion worth of projects this year, two-thirds of which are under middle income brand Camella Homes.

In 2013, the country’s largest homebuilder launched 35 projects with an estimated value of P26.1 billion, 31 of which are in the low and affordable segment.

The corporate notes offering comes on the heels of a recent debt retirement program. Vista Land earlier bought back $103.76 million worth of corporate notes ahead of maturity in line with efforts to lower the interest it pays to creditors.

Vista Land is the holding company of five business units: luxury brand Brittany, upper middle income segment Crown Asia, Camella Homes, Communities Philippines and condominium builder Vista Residences. It recently rolled out its socialized housing arm, Lumina Homes Inc., that will sell homes at P1.5 million and below.

Profits of the company jumped 15 percent to a record P5.06 billion last year from P4.38 billion in 2012 as real estate sales climbed 23 percent to P20.02 billion.