SMC to buy back $400-M debt notes

MANILA, Philippines - Food-to-infrastructure conglomerate San Miguel Corp. (SMC) is planning to buy back from lenders half of the $800-million debt notes issued in 2013.

In its disclosure to the Philippine and Singapore stock exchanges, SMC said it intends to terminate up to $400 million of the $800 million 4.875 percent notes due in 2023.

“The company proposes to accept for purchase up to $400 million in aggregate nominal amount of the notes and invites the holders of the notes to tender the notes for purchase by the company for cash,” SMC said.

“The purchase price will be determined pursuant to a modified Dutch auction at between 92.5 percent and 95 percent of the nominal amount of the notes validly tendered and accepted for purchase. In addition, the purchase price will be increased by 1.25 percent for the relevant notes of each noteholder that are validly tendered for purchase by 6 p.m. (London time) on March 26,” the firm added.

SMC said the tender offer for the retirement of the $400 million debt notes would commence on March 19 and end on April 1.

The conglomerate in April 2013 issued $800 million aggregate principal amount notes with a rate of 4.875 percent. The notes are listed on the Singapore Exchange Securities Trading Ltd.

“The offer is made in accordance with the company’s policy to actively manage its balance sheet liabilities and to achieve a lower running cost of debt,” SMC said.

SMC operates food, beverage, beer and liquor businesses through units San Miguel Pure Foods Co. Inc., San Miguel Brewery Inc., and Ginebra San Miguel Inc.

The conglomerate is also behind leading oil player Petron, SMC Global Power, San Miguel Yamamura Packaging Corp., and infrastructure projects, namely the Tarlac-Pangasinan-La Union Expressway (TPLEX), the NAIA Expressway, Skyway Stage 3, the Star Tollway upgrade, and Boracay Airport project.