Ayala Corp. on Thursday said it raised some P13.5 billion from the sale of its preferred share, some P1.5 billion short of its total offer as not all of its overallotment option were sold.
The company said in its report to the Philippine Stock Exchange that it sold all of its 20 million share-base offer and only 7 million of its original 10 million preferred class b series 2 shares.
The offering started on October 23 and ended on Wednesday, October 29.
The preferred shares were sold at P500 apiece and will have dividend rate of 5.575 percent per year.
The shares will be issued on November 5, the same time it will become available for trading at the PSE.
Class B shares, which are not convertible to common shares, are available for purchase to both local and international investors, but the company will only sell the securities locally.
The shares are perpetual equity securities that have preference in the payment of dividends. If the shares are not redeemed at the end of the fifth year from the date of issue, the dividend yield shall be reset to higher of either the original dividend rate or the sum of the closing of the five-year secondary market rate for bonds plus a spread of 175 basis points.
On the 10th year, the dividend rate shall reset to the higher of either the adjusted dividend rate or the sum of the closing of 10-year secondary market rate and a spread of 300 basis points.
Proceeds of the offer will be used by the company to pay off its maturing domestic loans reaching P12.98 billion.
The company said it has a P1.46-billion loan from Metropolitan Bank and Trust Co. and P5 billion from Banco de Oro. Both loans fell due in October.
Ayala has a P1.49-billion loan in corporate note from various lenders, which included Government Service Insurance System and Philippine American Life and General Insurance Co., falling due in February 2018 and another P5 billion loan from BDO that will mature in November 2019.