PureFoods fixes dividend rate for preferred shares offer

MANILA, Philippines - San Miguel Pure Foods Co. Inc. has finalized the dividend rate for its preferred shares, making it all set for its P15-billion offering slated to start next week.

In a disclosure to the local bourse, the food processing unit of diversified conglomerate San Miguel Corp. said the Series 2 preferred shares would carry an initial dividend rate of 5.6569 percent per year.

If the Series 2 preferred shares are not redeemed on the fifth anniversary of the listing date, the initial dividend rate shall be adjusted on the Series 2 step up rate, which is the average of the seven-year PDST-R2 plus 3.75 percent per annum, Purefoods said. 

Purefoods is selling up to 10 million perpetual Series 2 preferred shares with an oversubscription option of up to five million shares at an offer price of P1,000 apiece.

The offer period will commence on Feb. 16 and will end on March 5. Settlement and listing date of the shares is on March 12.

BPI Capital Corp., China Banking Corp., RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank have been tapped as issue managers, joint lead underwriters and bookrunners for the offer.

The issuance is expected to generate as much as P15 billion if fully subscribed.

Purefoods intends to use proceeds of the offering to redeem its P15-billion outstanding preferred shares, which are callable starting March 3, 2014 or on any dividend payment date afterwards.