Megaworld prices $200-M 7-year notes

MANILA, Philippines - Megaworld Corp. has successfully priced a $200-million fixed-rate corporate note issue with a term of seven years.

In a disclosure to the Philippine Stock Exchange, Megaworld said the notes will have a coupon of 6.75 percent and a yield of 6.875 percent.

Proceeds of the notes are intended for Megaworld’s refinancing and general corporate purposes. UBS acted as sole global coordinator and bookrunner for the issue.

The bonds, which will mature in 2018, will be listed on the Singapore Exchange Securities Trading Ltd. (SGX-ST).

Megaworld said “approval in principle” has already been received for the the listing of these notes. The issuance comes on the heels of a successful placement by Megaworld’s parent firm Alliance Global Group, which raised a total of P9.73 billion.

The company has slated for turnover a total of 5,700 units covering Bellagio 3, Forbes-wood Parkland Tower 2, Residential Resort in Newport City Sarasota and Pinecrest, Stamford Executive Residences Tower 1, 2 and 3, Manhattan Parkway Tower 1 and 2, Cityplace Tower A and B, Greenbelt Chancellor, Greenbelt Excelsior and Greenhills Heights.

Megaworld and sister companies Empire East Land Holdings Inc. and Suntrust Properties are accelerating their respective expansion programs with plans to launch P60 billion worth of projects this year. The group is rolling out 18,673 residential units with an aggregate floor area of more than 830,000 square meters.

Megaworld expects its rental income to exceed P4 billion this year with the completion of Lucky Chinatown Mall, which will have more than 108,000 sqm of retail space by end-2011. It will also complete more than 77,700 sqm of new office space to cater to the growing demand of business process outsourcing (BPO) companies.

The company will also boost its rental portfolio of BPO office developments and retail malls from 453,600 sqm in 2010 to around 639,400 sqm by end-2011.