MANILA, Philippines - Phoenix Petroleum Philippines has received the green light from the Securities and Exchange Commission (SEC) for the sale of P2 billion worth short-term commercial paper (STCP) to be issued on Oct. 24.
Phoenix tapped Multinational Investment Bancorporation and AB Capital Investment Corp. as joint issue managers and underwriters.
The papers will be listed with Philippine Dealing & Exchange Corp. (PDEx), the company also said.
Proceeds of the STCP issuance will be used for working capital to fund future expansion, said Phoenix Petroleum vice president for external affairs Raymond Zorrilla.
Philippine Rating Services Corp. (PhilRatings), a local debt watcher, has assigned an issue credit rating of PRS 2 (minus) to the proposed STCP.
According to PhilRatings, obligations rated PRS 2 exhibit above average or strong capability for payment of both interest and principal.
“This is normally evidenced by many characteristics of a PRS 1 rating but to a lesser degree. Earning trends and coverage ratios, while sound, will be more subject to variations. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is also maintained by the company. A plus or a minus sign can be added to further qualify an assigned rating,” PhilRatings said.
In assigning the rating the credit rating agency said it takes into consideration Phoenix Petroleum’s consistently improving revenue base and adequate liquidity and financial flexibility, its aggressive network expansion resulting in market leadership in the independent players sector, and its competent and experienced management team.
Phoenix now has 358 retail stations since it opened its first outlet in 2005.