San Miguel's planned three-year exchangeable bonds talked to yield 2%-2.5%, up 20%-25%

By Rebecca Melvin

New York, April 18 - San Miguel Corp.'s planned three-year exchangeable bonds, which are expected to price Wednesday, were talked to yield 2% to 2.5% with an initial conversion premium of 20% to 25%, according to a syndicate source.

Concurrently with the Regulation S exchangeables, San Miguel is offering a placement of common shares for a total capital raise of $850 million.

The split between the two offerings has not yet been specified, the source said.

The bonds will price at a premium to the equity offering share price, with quarterly resets after six months, and subject to an 80% floor of the initial exchange price.

The bonds are non-callable for 1.5 years and then are provisionally callable subject to a 130% trigger. The bonds have full dividend protection.

Goldman Sachs (Singapore) Pte., UBS AG, Credit Suisse (Singapore) Pte. Ltd. and Standard Chartered Securities (Singapore) Pte. are the joint bookrunners of the bond offering.

Proceeds will be used for the company's infrastructure, working capital and other general corporate purposes.

San Miguel is a food and beverage company based in the Philippines.

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