San Miguel Global Power Holdings Corp. approved Tuesday an offer and issuance of up to $300 million in senior perpetual capital securities.
The company, a power unit of San Miguel Corp. (SMC), said its board approved the issuance during a special meeting. The final amount of the issuance is subject to management’s determination.
SMGP also approved an offer to exchange any and all of their existing securities, issued in January 2020 and listed on the Singapore Exchange Securities Trading Limited (SGX-ST), for an equal principal amount of new U.S. dollar-denominated securities.
The board also approved the listing of the exchanged new securities and any additional new securities on the SGX-ST.
SMGP appointed Australia and New Zealand Banking Group Limited, Deutsche Bank AG, Singapore Branch, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, and Standard Chartered Bank as the dealer managers, and Sodali & Co Limited as the exchange and tender agent for the exchange offers.
For the issuance and listing of the new securities on the SGX-ST, the company appointed Standard Chartered Bank as sole global coordinator, and Australia and New Zealand Banking Group Limited, Deutsche Bank AG, Singapore Branch, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, and Standard Chartered Bank as joint lead managers.
DB Trustees (Hong Kong) Limited was appointed as trustee, and Deutsche Bank Aktiengesellschaft, Hong Kong Branch, was appointed as paying agent, calculation agent, transfer agent, and registrar. Latham & Watkins was appointed as the listing agent.
The corporation plans to use the net proceeds from the new securities primarily to cover the costs and expenses related to the exchange offer and tender offer, purchase or redemption of all remaining outstanding existing securities, and costs related to the issuance of the additional new securities.
“To the extent there are additional proceeds after the application described above, the corporation may, at its discretion, apply such proceeds toward pre-development costs of solar and hydropower energy projects and capital expenditures related to battery energy storage system projects,” the company said.
SMGP added that net proceeds will not be applied toward any of the corporation’s existing or planned coal-fired power assets or liquefied natural gas assets, including their construction or working capital requirements.
