Petron eyeing $500M capital securities for buyback

Petron eyeing $500M capital securities for buyback

The Petron Corp. is raising $500 million coming off the issuance of senior perpetual capital securities that will partially fund the buyback of its $750-million securities in Hong Kong Limited’s stock exchange.

In a disclosure, Petron announced that it will issue senior perpetual capital securities worth $500 million on January 19.

Removing commissions, the company is set to raise $498 million that will be used to repurchase, refinance and/or redeem the undated subordinated capital securities, the repayment of indebtedness and for general corporate purposes including capital expenditure.

The distribution rate will be 4.6 per annum until 2023. After which, securities will have a step-up rate of 2.5 percent per annum.

Last week, Petron announced a tender offer of its outstanding $750-milion, 7.5 percent undated, subordinated capital securities listed on the Hong Kong stock exchange.

It made a tender offer on securities up to $350 million until January 16.

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