Vista Land & Lifescapes Inc. of billionaire Manuel Villar revealed an attractive dividend payout to investors that will subscribe to its P5-billion preferred shares offering.
Vista Land said in a notice to the stock exchange Friday the initial dividend rates for VLL2A and VLL2B are 7.9892 percent and 8.4000 percent, respectively.
The dividend rate for VLL2A will be applicable for four years. If unredeemed on the fourth year, Vista Land will have to pay higher step-up interest rate based on the prevailing 10-year benchmark plus 3 percentage spread.
The dividend rate for VLL2B will be applicable for seven years, after which the company will have to pay higher rates based on the prevailing benchmark plus a spread of 3 percentage points.
Vista Land plans to sell 30 million Series 2 preferred shares, with an oversubscription option for another 20 million. The shares will be sold at P100 apiece.
The preferred shares are perpetual, cumulative, non-participating, non-voting, redeemable, and non-convertible.
Vista Land said it would use the proceeds to refinance various bank loans and corporate notes and for general corporate purposes. Offer period will run from Sept.16 to Sept. 25.
The shares will be listed on the main board of the Philippine Stock Exchange on Oct. 4.
Vista Land tapped BDO Capital & Investment Corp., China Bank Capital Corp. and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and joint book runners for the offer.
The property firm earlier tapped the debt market when it raised $350 million through the issuance of US-denominated unsecured fixed rate notes through its wholly-owned subsidiary VLL International.
The notes were issued under VLL International’s $2-billion medium-term note program.
The notes were guaranteed by Vista Land, Brittany Corp., Camella Homes, Inc., Communities Philippines, Inc., Crown Asia Properties, Inc. and Vista Residences, Inc.
