Oil conglomerate Petron Corp. has set an offer up to $401,957,000 in tender notes to repay its outstanding securities of $750 million listed in The Stock Exchange of Hong Kong Limited.
In a disclosure to the Philippine Stock Exchange (PSE) last week, Petron has announced that the set amount was determined to be the final maximum acceptance purchase it can offer.“The company has decided to accept for purchase an aggregate principal amount of $401,957,000 of Securities validly tendered with no pro rata scaling,” Petron said.
The settlement date has also been determined, which will be on or about January 22, depending on the financing condition. By then, the Securities acquired by the oil firm will be nulled
Meanwhile, Petron still have to pay its remaining balance of $348,043,000.
Earlier, the tender offer made amounted up to $350 million only until January 16 to repay the same outstanding $750 million valued at 7.5 percent undated, subordinated capital securities in the Hong Kong Stock Exchange.
To finance the tender offer, Petron said it will raise $500 million from its senior perpetual capital securities on January 19, in which the distribution rate is 4.6 percent per annum up to July 19, 2023 and payable semi-annually in arrears on January 19 and July 19.
After 2023, however, securities will be payable at a higher rate of 2.5 percent per annum.
The tender offer process, according to Petron, will be aided by the Hong Kong and Shanghai Banking Corp. (HSBC) Singapore Branch as its Sole Global Coordinator.
The oil firm has also contacted Australia and New Zealand Banking Group Limited, DBS Bank Ltd., Deutsche Bank AG (Singapore), Standard Chartered Bank (Singapore), and UBS AG (Singapore) as its joint dealer managers.
Meanwhile, D.F. King Limited will be Petron’s information and tender agent for the tender offer process.