Logistics and money transfer service provider LBC Express Holdings Inc. said Monday it completed the issuance of $50 million worth of seven-year convertible notes to CP Briks Pte. Ltd., a Singapore-based investment equity fund.
LBC said in a disclosure to the stock exchange the convertible notes due 2024 could be exchanged for LBC shares equivalent to an 11.88-percent stake in the company based on the conversion price of P13 per share.
LBC said if the entire $50-million notes were converted into shares, the ownership of majority shareholder LBC Development Corp. would go down to 70.45 percent from the current 84.59 percent.
The company’s public float will increase to 17.74 percent from 15.41 percent.
“The proceeds from the issuance of the instrument shall be used to fund the growth of the business of the company, including capital expenditures and working capital,” LBC said.
CP Briks is an investment holding entity managed by Crescent Fund Management Pte Ltd., which in turn is a Singapore-based private equity and special situations investment firm focusing on category-leading companies benefiting mainly from the consumer-driven and urbanization trends in Southeast Asia, China and Australia.
The fund raising activity is on top of the planned P1.5-billion follow-on offering.
LBC last month said it would refile with the Securities and Exchange Commission a registration statement for a P1.5-billion share sale. It plans to sell 69.1 million common shares, consisting of 10 million primary shares and 59.1 million secondary shares at an indicative offer price of P22 per share.
Philippine Commercial Capital Inc. was tapped as the lead underwriter and issue manager for the follow-on offering.
The Securities and Exchange Commission earlier rejected LBC’s share sale plan because of non-disclosure of material information covering the pending cases filed by the Philippine Depository Insurance Corp. against its owners.