BPI Family Savings to seek bondholder consents for merger with Bank of the Philippine Islands

By Marisa Wong

Los Angeles, July 6 – BPI Family Savings Bank, Inc. will solicit consents from holders of its 4.3% fixed-rate bonds due 2022 to approve its merger with Bank of the Philippine Islands, according to a company announcement.

The merger will not alter the interest rate or maturity date of the 4.3% bonds due 2022. However, once the merger becomes effective, Bank of the Philippine Islands will assume BPI Family Savings’ obligations under the bonds.

The merger was approved by the companies’ boards of directors in January and by shareholders in April. It is still pending approval by the Bangko Sentral ng Pilipinas and the Philippine Securities and Exchange Commission and will take effect on the later of the Philippine SEC’s certificate of merger and Jan. 1, 2022.

Because the merger is expected to take effect before the maturity of the bonds, the issuer is hoping to secure the consent of bondholders of record as of 5 a.m. ET on July 8.

The consent solicitation period will run from July 13 to 12 a.m. ET on Aug. 24.

The issuer is offering a consent fee of PHP 1.00 per PHP 1,000 principal amount.

Land Bank of the Philippines – Trust Banking Group is the trustee. BPI Capital Corp. is the consent solicitation adviser.

Both banks are based in Makati City, Philippines.

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