VLL International Inc., a wholly-owned unit of Vista Land & Lifescapes Inc., has tapped the debt market to raise $350 million to refinance outstanding debts.
“The new bond issue, coupled with a liability management transaction, allows Vista Land to reduce our short term refinancing risk, extend our maturity duration and realize interest expense savings,” Vista Land president and chief executive Manuel Paolo Villar said in a statement.
“It also provides us an opportunity to continue diversifying our sources of funding, ensuring we continue to build key relationships not only with our investors onshore, but also with investors from Europe and Asia,” he added.
The $350-million new debt is part of the company’s $1-billion medium-term notes program.
DBS Bank Ltd. and HSBC were joint lead managers and book runners for the new bonds, and are also joint dealer managers for the tender offer exercise.
China Bank Capital Corp. acted as domestic manager for the new bonds.
“The proceeds from the issuance will be used primarily for refinancing,” Vista Land said.
The company on November 10 announced a liability management exercise for the tender offer of its outstanding $51.8 million worth of 6.750 percent bonds due 2018 and $180.8 million in 7.450 percent bonds due 2019.
Any bonds not tendered will be redeemed by exercising the make whole redemption option on the target bonds.
Vista Land owns 88.34 percent of Starmalls Inc., the commercial segment that focuses on the development, leasing and management of shopping malls and commercial centers across the Philippines, and hotel operations.
Vista Land’s other subsidiaries are Britanny Corp., Camella Homes, Communities Philippines Inc. and Vista Residences Inc.
Vista Land posted a net income of P7.146 billion in the first nine months, up 12 percent from P6.381 billion year-on-year.
The company reported consolidated revenues of P26.9 billion in January to September, up 12 percent from P24 billion a year ago.