By Marisa Wong
Los Angeles, Sept. 8 – Philippines’ D&L Industries, Inc. disclosed details and adjusted the issue date for its PHP 5 billion issue of bonds in two tranches.
The offer period ran from Sept. 3 to Sept. 8, shifted from the initially announced offer period of Sept. 1 to Sept. 6.
The issue date will be on Sept. 14, pushed back from Sept. 10.
The company also amended the maturity dates and the optional redemption dates for the bonds.
The PHP 3 billion of series A bonds will mature on Sept. 14, 2024, and the PHP 2 billion of series B bonds will mature on Sept. 14, 2026.
The series B bonds will be callable on Sept. 14, 2024 or on Sept. 14, 2025.
As previously announced. 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.
Total bids amounted to PHP 13.8 billion, which is 4.6 times the base offer size of PHP 3 billion, according to a prior company press release.
Due to “robust” demand, the company exercised its maiden bond offering’s PHP 2 billion oversubscription option in full, as reported.
Interest rates were set at the tight end of the marketing range given the favorable response from investors, the company remarked.
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.
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| 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. 3-Sept. 8
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| Settlement date: | Sept. 14
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|
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| Series A bonds
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| Amount: | PHP 3 billion
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| Maturity: | Sept. 14, 2024
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| Coupon: | 2.7885%
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| Spread: | 50 bps to average three-year PHP BVAL rate from Aug. 24 to Aug. 26
|
|
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| Series B bonds
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| Amount: | PHP 2 billion
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| Maturity: | Sept. 14, 2026
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| Coupon: | 3.5962%
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| Spread: | 60 bps to average five-year PHP BVAL rate from Aug. 24 to Aug. 26
|
| Call option: | On Sept. 14, 2024 or on Sept. 14, 2025
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