Manila, Philippines – Listed oil giant Petron Corporation has tidied up its balance sheet in a successful swap and tender offer in Singapore that involved $550-million (P31.4-billion) perpetual securities.
In a stock exchange filing on Monday, Sept. 15, Petron said it swapped $333.19 million new senior perpetual notes that pay a higher 7.35 percent per annum for old securities that yield 5.95 percent. The fresh bonds can be redeemed, optionally, in September 2028.
The company bought back a separate $54.2 million worth of perpetual securities for cash in the tender offer deal.
Together, the swap and tender offer cut Petron’s $550-million perpetual debt by 70 percent.
In its Sept. 4 disclosure, at the start of the offer, Petron said it launched the “Exchange and Tender Offer as part of a proactive approach to the strategic management of its capital structure and to extend the maturity profile in respect of its outstanding obligations.”
