Philippines News Archives

Wednesday, March 28, 2001

AC ( 03/27/2001 : PDI )
Ayala Corp. yesterday announced the issuance of P1.75 B worth of
preferred shares through a private placement offering. In a disclosure
to the Philippine Stock Exchange yesterday, Ayala Corp. managing
director Renato Marzan said the company’s board of directors has
approved the issuance of preferred shares with a maturity of five
years and a put option on the third year. The subscribers to the new
offering will be given preferred status as to dividends but the shares
will not be convertible to common shares. The preferred shares will
have no voting or preemptive rights. "The issuance, which will be
underwritten by BPI Capital Corp. as lead underwriter, shall be subject
to such terms and conditions that may be agreed upon by the
corporation and BPI Capital," Marzan said. The dividend will be at a
floating rate based on 91-day treasury bills yields. At the end of the
3rd year from issue date, the preferred shareholders shall have the
right to sell the outstanding preferred shares to the issuer at a price
equivalent to the sum of the aggregate issue value of the preferred
shares plus all accrued and unpaid dividends. "It’s good for them
because they are borrowing at T-bill rate. That’s cheaper than
borrowing from a bank," Eagle Equities president Joseph Roxas said.
Roxas said it was likely that Ayala Corp. already had received firm
pledges to subscribe to the private placement offering. Otherwise, he
said the offering might not be too attractive because if the yields were
based on floating 91-day T-bill rate anyway, investors might just as
well put their money directly in T-bills instead. "There’s no incentive
because there’s no convertibility (to Ayala Corp. common shares),"
Roxas said. A few months ago, Ayala Corp. redeemed $48 M worth
of bonds that were converted by bondholders into shares in its
property subsidiary, Ayala Land Inc. The redemption has released
about 300 million ALI shares held by the conglomerate to the free
market, which explained the perceived increase in supply of ALI
shares since the start of the year. Stock analysts have been
impressed by the recent improvements in the sales performance of
ALI’s Westgrove and Ayala Greenfield Heights as well as the strong
appetite for its Montgomery townhouse project on E. Rodriquez
Avenue in Quezon City.

- posted by StockMarket @ 12:38 AM

Tuesday, March 27, 2001

AC ( 03/26/2001 : AFX )
Ayala Corporation said its board of directors has approved the issue
of 1.75 B pesos worth of redeemable preferred AA shares. The
shares will be issued at 5.0 pesos each and will be redeemable five
years from the date of issue, with a floating interest rate based on the
91-day Treasury bill rate, it said. At the end of the third year,
shareholders have the option to sell their AA shares to Ayala Corp for
the issue price including unpaid dividends. Ayala Corp said the issue
will be underwritten by BPI Capital Corp, but did not specify any issue
date.
- posted by StockMarket @ 12:41 AM

AC ( 03/26/2001 : PSE )
Ayala Corporation (“AC” or the “Corporation”) informed the Exchange
that at the regular meeting of its Board of Directors held on 22 March
2001, the Board approved, among others, the issuance by the
Corporation of P1.750 B worth of Preferred “AA” Shares. The
indicative terms of the Preferred “AA” Shares are as follows:
Issuer : Ayala Corporation
Issue : Redeemable Preferred Shares
Amount : P 1.75 Billion
Par Value : P 1.00 per share
Issue Price : P 5.00 per share
Term : Five (5) years with the right to
put on third year
Dividend Rate : Floating rate based on 91-day
tbills
Offering : Private placement exempt from the
registration requirements of Securities Regulation Code
Mandatory Redemption : Redeemable in full via
payment
in cash of 100% of Issue Price at the end of the 5th year from Issue
Date
Put Option : At the end of the 3rd year from
Issue Date, the Preferred Shareholders shall have the right to sell the
outstanding Preferred shares to the Issuer at the price
equivalent to the sum of the aggregate issue value of the
Preferred shares plus all accrued interest and unpaid dividends
Other Features : Shareholders given preferred status
Non-convertible into common shares Non-participating Non-voting
No preemptive rights
The issuance which will be underwritten by BPI Capital Corporation as
Lead Underwriter, shall be subject to such further terms and
conditions that may be agreed upon by the Corporation and BPI
Capital.
- posted by StockMarket @ 12:40 AM

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