By Marisa Wong
Los Angeles, Sept. 3 – Philippines’ D&L Industries, Inc. announced it priced PHP 5 billion of bonds in two tranches.
Total bids amounted to PHP 13.8 billion, which is 4.6 times the base offer size of PHP 3 billion, according to a company press release.
Due to “robust” demand, the company exercised its maiden bond offering’s PHP 2 billion oversubscription option in full.
The company will issue PHP 3 billion of three-year series A bonds and PHP 2 billion of five-year series B bonds.
Interest rates were set at the tight end of the marketing range given the favorable response from investors, the company remarked.
The series A bonds will carry a coupon of 2.7885%, equivalent to the average three-year PHP BVAL rate from Aug. 24 to Aug. 26 plus a spread of 50 basis points.
The series B bonds will carry a coupon of 3.5962%, equivalent to the average five-year PHP BVAL rate from Aug. 24 to Aug. 26 plus a spread of 60 bps.
The offer period ran from Sept. 1 to Sept. 6, with settlement on Sept. 10, as previously announced.
China Bank Capital Corp. is the issue manager, lead underwriter and bookrunner.
Proceeds will be used mainly to finance the company’s expansion plans in Batangas and the corresponding working capital requirements.
PhilRatings has rated the bonds PRS Aaa.
The chemical company is based in Quezon City, Philippines.
| Issuer: | D&L Industries, Inc.
|
| Issue: | Bonds
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| Amount: | PHP 5 billion
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| Bookrunner: | China Bank Capital Corp.
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| Offer period: | Sept. 1-Sept. 6
|
| Settlement date: | Sept. 10
|
|
|
| Series A bonds
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| Amount: | PHP 3 billion
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| Maturity: | Three years
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| Coupon: | 2.7885%
|
| Spread: | 50 bps to average three-year PHP BVAL rate from Aug. 24 to Aug. 26
|
|
|
| Series B bonds
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| Amount: | PHP 2 billion
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| Maturity: | Five years
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| Coupon: | 3.5962%
|
| Spread: | 60 bps to average five-year PHP BVAL rate from Aug. 24 to Aug. 26
|
|
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