SMC starts P30 billion preferred share offer

MANILA, Philippines — Conglomerate San Miguel Corp. (SMC) has commenced with its preferred shares offering aimed at raising as much as P30 billion.

SMC is issuing 266.7 million Series 2 preferred shares, with an oversubscription option of 133.3 million shares, priced at P75 apiece.

The offer consists of Series 2-S preferred shares with an initial dividend rate of 6.9650 percent, Series 2-T preferred shares at 7.2560 percent and Series 2-U preferred shares at 7.5360 percent.

The offer period will run until Oct. 17, with the shares to be issued and listed on Oct. 24 on the Philippine Stock Exchange.

SMC will use the proceeds for the refinancing of existing short-term loans, which were used to redeem the Series 2-F Preferred Shares, to partially redeem the Series 2-J Preferred Shares and the Series 2-K Preferred Shares.

It will likewise be utilized to make additional investments in the infrastructure business, including the Manila International Airport and other airport related projects in Bulakan, Bulacan as well as the company’s tollways projects.

Bank of Commerce, BDO Capital and Investment Corp. and PNB Capital and Investment Corp. will be the joint issue managers. They are joined by BPI Capital Corp., China Bank Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., RCBC Capital Corp. and Security Bank Capital Investment Corp. as joint lead underwriters and book runners.