By Susanna Moon
Chicago, May 29 - Petron Corp. said it priced PHP 10 billion of fixed-rate corporate notes, upsized from the original amount of PHP 3 billion due to high demand from participating banks.
The issue priced at par to yield 8.139% for the five-year notes and at par to yield 9.329% for the seven-year notes. The facility came 200 basis points over the benchmark Pdstf rate, or at the lowest end of the company's pricing guidance.
Petron signed the note facility agreement on Friday.
"The strong and positive response to our notes issue reflects the trust and confidence of the investment community in the viability and profitability of Petron over the long term," Petron president Eric O. Recto said in a press release.
"It likewise underscores the company's solid fundamentals, undisputed market leadership, extensive and efficient distribution network and numerous synergies with San Miguel," Recto said.
Given the total size of the deal, the company said that it will no longer pursue its initial plan to issue retail bonds.
Proceeds from the offering will be used to pursue projects such as an aggressive retail network expansion program and additional improvements at its 180,000 barrel-per-day Bataan refinery.
BPI Capital Corp. and ING Bank NV, Manila Branch are joint issue managers, and the Development Bank of the Philippines and Hongkong and Shanghai Banking Corp. Ltd. are joint lead managers.
Petron is an oil company based in Makati City, the Philippines.
| Issuer: | Petron Corp.
|
| Issue: | Fixed-rate corporate notes
|
| Total amount: | PHP 10 billion, increased from PHP 3 billion
|
| Managers: | BPI Capital Corp. and ING Bank NV, Manila Branch (managers); the Development Bank of the Philippines and Hongkong and Shanghai Banking Corp. Ltd. are (lead managers)
|
| Pricing date: | May 29
|
| Rating: | PhilRatings: Aaa
|
| Spread: | Pdstf rate plus 200 bps
|
|
|
| First tranche
|
| Maturity: | Five years
|
| Coupon: | 8.139%
|
| Price: | Par
|
| Yield: | 8.139%
|
|
|
| Second tranche
|
| Maturity: | Seven years
|
| Coupon: | 9.329%
|
| Price: | Par
|
| Yield: | 9.329%
|
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