Petron eyes repurchase of $50M perpetual bonds


Petron Corporation is eyeing repurchasing as much as $50 million of perpetual bonds listed in Singapore. 

In a disclosure to the Philippine Stock Exchange (PSE), Petron announced its proposed tender offer to purchase up to US$50 million of its outstanding US$500 million senior perpetual capital securities. 

Petron said that the tender offer is “to optimize the cost of capital and capital structure.” 

The price of the tender offer would be determined pursuant to a Modified Dutch Auction Procedure. 

“Under the Modified Dutch Auction Procedure, the Offeror will determine, in its sole discretion, following expiration of the Tender Offer, the Purchase Price for the Securities taking into account the principal amount of Securities so tendered and the Offer Prices specified (or deemed to be specified) by tendering Securityholders, as more fully described in the Tender Offer Memorandum,” Petron said in its disclosure. 

According to the tender offer’s indicative timetable, the expiration deadline is on January 12, while the payment date is around January 18.