Petron tidies up old debt in successful swap, tender offer

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.”

The offer expired on Friday, while settlement is set for Sept. 22.