The Market Monitor Minding the Nation's Business
Vista Land’s subsidiary VLL International Inc. successfully priced last June 11 a $300 million offering of senior unsecured notes due 2022 with a nominal rate of 7.375 percent, the first 7-year tenor Notes issued by the Company under its $1-billion debut medium term note programme.
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.
Early last week the company offered to buy back its $100 million notes due 2018 and $350 million notes due 2019. At the end of the tender offer period, an aggregate of about $206.7 million notes were tendered by noteholders and accepted by the company.
Proceeds from the offering will primarily be used for refinancing, general working capital purposes and other general corporate purposes.
Vista Land’s growing brand name within the Philippines credit space was rewarded with a US$1 billion order book, its largest ever.
However, most of the allocation went to investors who had participated in the tender offer. The Company’s growing liability management expertise is also likely to be making investors more comfortable with its underlying creditworthiness.
The new notes were also widely distributed with banks accounting for around 52 percent, fund managers for 40 percent, and private banks for eight percent.
By geography, Asia took up 91 percent with Europe at nine percent.
Asian offshore participation was sizeable with combined allocations of 51 percent, achieving the company’s objectives of diversifying away from its onshore investor base.
HSBC was sole structuring advisor and together with DBS Bank Ltd, were joint dealer managers on the tender offer; while BDO Capital & Investment Corp. was 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 Corpor. and China Banking Corp. acted as Joint Domestic Lead Managers.
Vista Land is the largest home builder in the Philippines having built about 300,000 homes in 86 cities and municipalities in 35 provinces around the country.
