Philippine’s largest homebuilder Vista Land & Lifescapes Inc, through its subsidiary VLL International Inc, has raised $300 million from the sale of seven-year corporate notes priced at 7.375 per annum.
This is the first seven-year tenor Notes issued by its parent firm under its $1 billion debut medium term note program, the company disclosed to the Philippine Stock Exchange on Monday.
“The Notes were issued as part of the Company’s liability management exercise designed primarily to extend the Company’s US dollar notes due 2018 and 2019,” Vista Land said in its statement.
“Proceeds from the offering will primarily be used for refinancing, general working capital purposes and other general corporate purposes,” its disclosure added.
Only last week, Vista Land offered to buy back its $100 million notes due 2018 and $350 million notes due 2019. At the end of the tender offer period, the company accepted an aggregate of about $206.7 million notes tendered by noteholders.
Also read: PH’s Vista Land to repurchase $450m notes
The homebuilder’s growing brand name within the Philippines credit space was rewarded with a $1 billion order book, its largest ever but most of the allocation went to investors who participated in the tender offer.
The new Notes were also widely distributed with banks accounting for around 52 per cent, fund managers for 40 per cent, and private banks for 8 per cent. Geographically, Asia took up 91 per cent with Europe at 9 per cent.
“Asian offshore participation was sizeable with combined allocations of 51 per cent, achieving the company’s objectives of diversifying away from its onshore investor base,” Vista Land reported.
HSBC was sole structuring advisor and together with DBS Bank Ltd, both serves as joint dealer managers on the tender offer.
Meanwhile, BDO Capital & Investment Corporation were the domestic dealer manager.
DBS Bank Ltd. and HSBC acted as joint global coordinators, joint lead managers and joint bookrunners for the new notes issuance while BDO Capital & Investment Corporation and China Banking Corporation acted as joint domestic lead managers.
Vista Land has so far built 300,000 homes in 86 cities and municipalities in 35 provinces nationwide.
The company’s last trading price dropped 0.56 per cent or 0.040 to close at P7.04.