Philippines' Puregold details upcoming PHP 5 billion issue of notes

By Marisa Wong

Madison, Wis., Sept. 27 - Puregold Price Club Inc. released more details on its proposed issue of up to PHP 5 billion of fixed-rate corporate notes. The company conducted a lenders' briefing arranged by First Metro Investment Corp. on Thursday to discuss the terms of the upcoming notes.

The company said it will offer the bonds in two series. Series A bonds will have a maturity of five years and one day, and series B bonds will have a tenor of seven years.

The interest rate will be based on the PDST-F benchmark rate plus 70 basis points to 120 bps. The final spreads will be determined through a bookbuilding process.

The series A and series B bonds will be callable in whole on any quarterly interest payment after three and four years, respectively. The early redemption premium for the series A bonds will be 1% in year three and 0.5% after that. The premium for the series B bonds will be 1% in year four and will step down to 1% in year five and to 0.5% in year six.

If the notes are oversubscribed, the company has the option to increase the issue size by up to PHP 3 billion.

The offer period will begin on Oct. 8 and end on Oct. 12. The notes will price on Oct. 19 and settle on Oct. 23.

As noted before, proceeds will be used to finance the company's expansion plans and for general corporate purposes.

Based in Manila, Puregold operates wholesale and retail stores, including supermarkets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.