MANILA, Philippines - The Securities and Exchange Commission has given its go-signal for the P15-billion preferred shares offering of Ayala Corp., the country’s oldest conglomerate.
AC is now cleared to offer up to 30 million preferred Class B shares at P500 apiece.
The conglomerate plans to use proceeds of the offering solely to refinance certain peso denominated obligations amounting to P12.95 billion.
The debt obligations include bank loans to BDO (P10 billion), Metrobank (P1.46 billion), and corporate notes from various lenders that include The Philippine American Life and General Insurance Co., Philplans First Inc., Philam Bond Fund Inc., and Government Service Insurance System (P1.49 billion).
AC said in its filing that the new series of Class B shares would be offered with a fixed quarterly dividend rate and are structured as perpetual equity securities that have preference in the payment of dividends.
BPI Capital Corp has been tapped as the issue manager for the sale of Class B shares which shall be listed on the Philippine Stock Exchange.