SAN MIGUEL Corp. said in a filing to the stock exchange on Monday that it had submitted the preliminary prospectus and registration statement with the Securities and Exchange Commission (SEC) for the shelf registration of fixed-rate bonds worth up to P50 billion.

The bonds will be sold in three tranches over the course of three years, with each offering a supplement from the date of the registration statement’s effectiveness.

It will be issued at face value and classified and exchanged on the Philippine Dealing and Exchange Corp.

“The usage of proceeds for each tranche of the bid will be set out in the related offer supplement,” San Miguel said in its formal prospectus, which was made available on the company’s website.

San Miguel also filed a bid supplement for up to P20 billion in fixed-rate notes, with an oversubscription incentive of up to P10 billion, for the first tranche.

The initial offering would consist of six-year Series I Bonds due in 2027, with a third-year put option or repricing. It may be redeemed in either the fourth or fifth year.

If the oversubscription incentive is only partially or not at all exercised during the bid duration, the balance would be carried over to the bonds under shelf registration.

“The whole proceeds of this bid will be used for redenominating the company’s current dollar-denominated commitments, as well as the costs of shelf registration and issuance of the offer bonds,” the company said in its preliminary offer supplement.

BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., ING Bank N.V. Manila Branch, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. were appointed as joint issue managers, joint lead underwriters, and bookrunners for the initial bid.

The shelf registration of P50 billion in fixed-rate bonds and its planned first tranche has yet to be authorized by the SEC.


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