By Marisa Wong
Morgantown, W.Va., Jan. 12 – Petron Corp. said it priced $500 million of senior perpetual securities at par on Thursday.
The distribution rate is 4.6% initially and resets on July 19, 2023 and every five years afterward at the Treasury rate plus initial credit spread of 226.9 bps plus a step-up margin of 250 bps.
The securities are callable on the first reset date and on any semiannual distribution payment date after that. The securities also have a clean-up call option and a change-of-control put option.
ANZ, DBS Bank, Deutsche Bank, HSBC, Standard Chartered Bank and UBS are the joint lead managers and joint bookrunners for the Regulation S offering. HSBC is the global coordinator.
The deal is expected to close on Jan. 19.
Proceeds will be used to repurchase, refinance or redeem undated subordinated capital securities, to repay debt and for general corporate purposes.
Petron is an oil company controlled by conglomerate San Miguel Corp. Both companies are based in Mandaluyong City, Philippines.
| Issuer: | Petron Corp.
|
| Issue: | Senior perpetual securities
|
| Amount: | $500 million
|
| Maturity: | Perpetual
|
| Bookrunners: | ANZ, DBS Bank, Deutsche Bank, HSBC, Standard Chartered Bank and UBS
|
| Coupon: | 4.6% initially; resets on July 19, 2023 and every five years after that at Treasury rate plus initial credit spread of 226.9 bps plus step-up margin of 250 bps
|
| Price: | Par
|
| Call option: | At par on July 19, 2023 and on any semiannual distribution payment date after that; clean-up call if less than 25% principal amount remains outstanding, at 101 before July 19, 2023 and at par after that
|
| Put option: | Upon change of control at 101 prior to July 19, 2023 and at par afterward
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 19
|
| Distribution: | Regulation S
|
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