ALTERRA Capital Partners Inc., a company in the process of renaming itself to Philab Industries Inc., said it has secured a P400-million loan from Altus Capital Corp. to be repaid within 30 months with interest rate of 15 percent per year.
“The purpose of the loan is, among others, to fund working-capital requirements and additional investments into the company’s and its affiliates’ business,” the company said in its disclosure.
Earlier this week the company filed with the Securities and Exchange Commission its registration statement for its follow-on offering of 500 million shares, the price of which will be at a deep discount at its current trading price.
The company said the indicative offer price for the follow-on offering is from P3.25 to P6.75 per share, or a discount of between 55 percent and 12 percent from its last traded price of P7.27.
At that price, the company may raise between P1.62 billion and P3.37 billion.
Philippine Commercial Capital Inc. is the lead underwriter for the follow-on offering.
Philab, a provider of health-care tool kits to many government agencies, was supposed to become public through its backdoor listing using Alterra last year.
It was during the last half of 2016 when the company’s board approved several resolutions for the backdoor listing, which is deemed to occur when a listed company acquires, merges or combines with an unlisted company or vice versa. The combination of the two firms will result in a substantial change in the business, membership of the board of directors, or voting structure of the listed company.
The follow-on offering is one of the activities for the entry of Philab.
“The purpose of the transaction is to revive the business operations of, and give value to, ALT [Alterra]. As may be noted from its financial statements, ALT has no substantial assets. Through the transaction, new businesses will be infused into the company, which will allow the company to take initial steps toward providing its shareholders with better returns on their investment,” it said in a previous disclosure.