Petron Corp. said Wednesday it will hold a tender offer to purchase $50 million of its outstanding $500-million senior perpetual capital securities.
Petron said in a disclosure to the stock exchange it would make an announcement in the Singapore Exchange Securities Trading Ltd. on the proposed tender offer.
Petron issued the invitation for a tender offer to the holders of the $500-million 4.6-percent SPCS issued on Jan. 19, 2018 at a price yet to be determined.
“The offeror proposes to accept valid tenders of Securities for purchase pursuant to the tender offer such that the aggregate principal amount of the securities accepted is in an amount of up to the maximum acceptance amount,” Petron said.
Petron said it is undertaking the tender offer to optimize its cost of capital and capital structure. The tender offer also provides liquidity to investors at a premium to market price, it said.
The tender offer will commence on Jan. 4 and expire on Jan. 12. Payment date is on Jan 18.
Petron is the Philippines’ largest oil company, operating the only remaining refinery capable of providing nearly 40 percent of the country’s petroleum requirements.