SMB seeks bondholders’ okay on trust amendments

MANILA, Philippines - San Miguel Brewery Inc. (SMB) is seeking to fasttrack its ongoing consent solicitation to bondholders, a move currently being undertaken by the brewery unit of diversified conglomerate San Miguel Corp. to allow it to expand its product offerings outside alcoholic beverages.

In a statement, SMB said it has decided to advance the closing of its consent solicitation for its proposed amendments to several “trust agreements” between its bondholders.

“Consent forms should be received by the trustees for the bonds on or before 5:00 p.m. of Jan. 22, 2015. The consent solicitation process will be closed thereafter and consent forms will no longer be accepted,” SMB said.

Closing of the consent solicitation was earlier set on Jan. 30.

“With the advanced closing of the consent solicitation, the dates for the execution of the agreement by SMB with the trustees of the bonds on the proposed amendments and the payment of the consent fees to consenting bondholders have also been estimated to be on Feb. 2, 2015 and Feb. 5, 2015, respectively, earlier than stated in the consent solicitation statements,” the country’s largest beer producer said.

The consent solicitation, which commenced last Jan. 5, sought the consent of SMB bondholders “to align the terms of Section 7.2 (c) and (k) of the respective trust agreements with Section 7.2 (c) of the trust agreement dated March 14, 2014 covering SMB’s Series G and H bonds.”

The solicitation is being sought to allow SMB to amend its articles of incorporation so it can engage in the business of manufacturing, selling, distributing and dealing, in any and all kinds of beverage products.

SMB is currently engaged in the manufacture and sale of fermented and malt-based beverages, particularly beer of all kinds and classes.

SMB said ING Bank N.V. Manila branch has been appointed as advisor for the consent solicitation.

The bond issuances which SMB is seeking to amend include the trust agreement dated March 16, 2009 covering its outstanding 10.5 percent Series C bonds, due 2019 and another trust agreement dated March 15, 2012 covering its outstanding 6.05 percent Series D bonds due 2017, 5.93 percent Series E bonds due 2019, and 6.60 percent Series F bonds due 2022.