SMC Global Power accepts $123.9-million tender offers for securities

By Alena Mae S. Flores – November 7, 2022, 7:55 pm
from manilastandard.net

San Miguel Corp. said Monday power unit SMC Global Power Holdings Corp. accepted all valid tender offers of securities from security holders representing a total of $123.934 million following the expiration deadline on Nov. 4.

SMCGP said that on Oct. 26, its board authorized the conduct of a $400-million tender offer to the holders of the US dollar-denominated senior perpetual capital securities.

The board approved the conduct of the tender offer to the holders of SMCGP securities listed with the Singapore Exchange Securities Trading Ltd.

The securities subject of the tender offer includes the $800-million 6.5% SPCP issued on April 25, 2019; $500 million 5.95% SCPC issued on Nov. 5, 2019; $600 million 5.70% SCPC issued on Jan. 21, 2020; $750 million 7% SCPC issued on Oct. 21, 2020; and the $750 million 5.45% SCPC issued on June 9, 2021.

SMCGP said the payment date for the settlement of the tender offers is Nov. 9.

“Each security holder that validly tendered their Securities at or prior to the expiration deadline and which the offeror accepted for purchase from such security holder will be paid: the applicable purchase price; and the relevant accrued distribution amount,” SMCGP said.

SMC earlier SMCGP would weather the financial challenges following the denial by the Energy Regulatory Commission of its petition for temporary relief from its fixed-rate power supply agreements with Manila Electric Co.

“We’re confident that we will be able to manage the company’s maturing obligations in 2023 and beyond. If necessary, there will be SMC parent support. For our bondholders, SMCGP will continue to be fully compliant with its financial covenants at all times,” SMC president and chief executive Ramon Ang said.