By Jennifer Chiou
New York, July 1 - Energy Development Corp. said it completed a PHP 7.5 billion private placement of fixed-rate corporate notes in two tranches.
The issue was 2.5 times oversubscribed.
In a news release Wednesday, Energy Development said it originally targeted a PHP 3 billion placement of notes.
The first tranche of five-year and one day notes has a coupon of 8.3729%.
The second tranche of seven-year notes has a coupon of 9.4042%.
The company previously said it would issue a combination of fixed-rate notes and retail bonds to pay off debts and fund expansion. Proceeds will also go toward general corporate purposes.
The company had said in a letter of clarification to the Philippines Stock Exchange that the exact combination had not yet been fully determined. Previously, Giles Puno, chief financial officer of First Gen Corp., the company's parent, indicated that the issue was to be PHP 3 billion to PHP 5 billion of notes in a private placement and another PHP 3 billion of bonds to individual investors.
BDO Capital & Investment Corp. was the lead arranger. PNB Capital & Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. were the co-lead arrangers.
The producer of geothermal energy is based in Taguig City, the Philippines.
| Issuer: | Energy Development Corp.
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| Issue: | Fixed-rate corporate notes
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| Total amount: | PHP 7.5 billion
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| Arrangers: | BDO Capital & Investment Corp. (lead); PNB Capital & Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. (co-leads)
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| First tranche
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| Maturity: | Five years and one day
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| Coupon: | 8.3729%
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| Second tranche
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| Maturity: | Seven years
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| Coupon: | 9.4042%
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