SEC Greenlights P7.5 Billion Bond Offer from Del Monte PH
The Securities and Exchange Commission (SEC) has approved the public offering by Del Monte Philippines Inc. (DMPI) of fixed-rate bonds worth up to P7.5 billion, subject to the company’s compliance with certain remaining requirements.
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According to Del Monte’s registration statement, the company will offer up to P5 billion worth of bonds, with an oversubscription option of up to P2.5 billion. DMPI will issue the bonds at face value, consisting of series A bonds due 2023 and series B bonds due 2025. They will be listed and traded on the Philippine Dealing & Exchange Corp.
The company expects to net P7.389 billion from the offer, assuming the oversubscription option is fully exercised. Proceeds from the offer will be used to repay the company’s existing debt, which are short-term and unsecured in nature.
Del Monte Pacific Ltd had earlier said proceeds of the offering “will be used to refinance existing loans and fund other corporate purposes.”
The fixed-rate bonds were assigned a PRS Aaa rating by the Philippine Rating Service Corporation.
BDO Capital & Investment Corporation, China Bank Capital Corporation, First Metro Investment Corporation, and RCBC Capital Corporation were tapped as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.
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DMPI is a leading producer, distributor, and marketer of food and beverage products. It has been in operation in the Philippines for over 90 years, offering such products as packaged pineapple and mixed fruit, canned and carton ready-to-drink juices, tomato sauce, and spaghetti sauce.