BPI Family Savings obtains bondholder consents, ends solicitation early

By Marisa Wong

Los Angeles, Aug. 6 – Philippines’ BPI Family Savings Bank, Inc. ended its previously announced consent solicitation early, at 12 a.m. ET on Aug. 6 instead of 12 a.m. ET on Aug. 24, according to company press release.

The company was soliciting consents from holders of its 4.3% fixed-rate bonds due 2022 to approve its merger with Bank of the Philippine Islands. The solicitation period began on July 13.

On Friday the issuer confirmed that it had already obtained the required consents to the merger.

As announced on July 6, 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 was hoping to secure the consent of bondholders of record as of 5 a.m. ET on July 8.

The issuer will pay 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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