PHOENIX Petroleum Philippines, Inc. plans to offer the remaining P3 billion of its P10-billion commercial papers registered with the securities regulator to refinance its loans, the oil company told the stock exchange on Monday.
“The expected net proceeds of the offer are intended to be used to refinance existing short-term loans of the Corporation, which were used to finance working capital requirements in relation to the regulation importation of fuels and lubricants by the Corporation,” the company said in its notice of offer to the Securities and Exchange Commission (SEC).
Series C of the commercial paper program will have a tenor of 360 days from the issue date, which is tentatively scheduled on Dec. 11, 2019. The company said assuming a final discount rate of 5.2677% and the offer is fully subscribed, the net proceeds of the offer are expected to reach P2.82 billion.
Phoenix Petroleum, a fast-growing independent oil company, said the announcement of the final issue price on the discount rate is set tentatively on Nov. 28, 2019.
On Aug. 5, 2019, the company issued its P3.5 billion worth of commercial papers under Series B of its SEC-registered three-year commercial paper program. Priced at a discount rate of 7%, the Series B debt will be redeemed in 360 days. PNB Capital and Investment Corp. served as lead arranger and issue manager.
The issuance supported the short-term funding requirements of the company for its importation and sale of petroleum products. It followed the initial P7-billion issuance last Dec. 27, 2018 under Series A and B.
On June 25, 2019, the company repaid its Series A-1, with P3.5 billion worth of commercial papers remaining outstanding, and will mature and will be repaid in full on Dec. 22, 2019 or on the next banking day.
Shares in the company were unchanged on Monday at P11.08 each. — Victor V. Saulon