JG Summit unit ups fixed-rate notes offer to $300M

JGSH Philippines Ltd., a wholly-owned offshore subsidiary of Gokongwei investment holding company JG Summit Holdings Inc., has increased the size of its fixed-rate notes offering to $300 million from $200 million.

In a disclosure to the Philippine Stock Exchange, JG Summit said it has decided to increase the size of its offering due to the exceptionally positive response of the market.

The notes carry an interest of eight percent and will mature in 2013.

Proceeds from the offering will be used to refinance debt and for general corporate purposes.

Tapped as book runner and lead manager for the notes offer is Credit Suisse First Boston (Europe) Ltd.

JG Summit may serve as guarantor of the notes issue as its board has authorized management to determine the extent of the holding concern’s participation as guarantor and to finalize the terms and conditions of the guarantee.

JG Summit has investments in property, retail, banking and finance, publishing, telecommunications, textile, food manufacturing, petrochemicals and air transport, among others.

Another offshore unit, Telegraph Developments Ltd., earlier secured a $220-million loan from the Overseas Chinese Banking Corp. Ltd. The loan will most likely be used to finance JG Summit’s offer of S$1 billion or $1.09 a share for Singapore-based property and manufacturing unit United Industrial Corp. JG Summit made the offer after acquiring an additional 50,000 UIC shares at $1.09 per share, raising its stake to 30.0008 percent from 29.99 percent, triggering a mandatory tender under Singapore law.

Under Singapore rules, a buyer is required to make a general offer for shares in a company if it has accumulated more than 30 percent of that company. UIC’s main asset is its controlling stake in Singapore Land Ltd., which is one of the biggest office landlords in the city-state’s central business district.