Philippines' SM gets tenders for $196.58 million 6¾% bonds, 6% bonds

By Angela McDaniels

Tacoma, Wash., Oct. 6 - SM Investments Corp. received tenders for $75,736,000 of its $350 million 6¾% bonds due 2013 and $120,844,000 of its $500 million 6% bonds due 2014, according to a company news release.

The company is offering to issue up to a combined $500 million of fixed-rate bonds due 2017 in a cash offering and in an exchange offer for the 6¾% bonds and 6% bonds.

The exchange offer began Sept. 22 and ended at 11 a.m. ET on Oct. 5.

The coupon for the new bonds has not yet been set. It will be at least 5.2%.

SM Investments said it has not made a final determination about the amount of bonds to accept in the exchange offer and the amount of new bonds to be issued. If all of the bonds tendered are accepted for exchange, the amount of new bonds to be issued will be $213,699,000.

In the cash offering, the price of the bonds will be par.

In the exchange offer, the exchange price will be $1,095 for each $1,000 principal amount of 6¾% bonds and $1,082.50 for the 6% bonds.

The company also will pay accrued interest up to but excluding the settlement date in cash.

In order to participate, holders had to exchange enough existing bonds to receive $100,000 of new bonds.

The exchange offer is conditioned on at least $300 million of the new bonds being issued.

The joint dealer managers and joint lead managers are Citigroup Global Markets Ltd. (+632 894 7871, +852 2501 2552, attn: Lynette Ortiz, Duncan Philips, or e-mail lynette.ortiz@citi.com or duncan.philips@citi.com) and Hongkong and Shanghai Banking Corp. Ltd. (+852 2822 4100, attn: liability management, or e-mail liability.management@hsbcib.com). The joint dealer manager and co-manager is BDO Capital & Investment Corp. (+632 840 7844, +632 840 7682, +632 840 7000, attn: Gabriel U. Lim, Karen C. Lim, Carlos Miguel Garcia, or e-mail lim.gabriel@bdo.com.ph, lim.karen@bdo.com.ph, Garcia.carlosmiguel@bdo.com.ph).

Citibank, NA, London Branch is the exchange agent.

The Pasay City, Philippines-based company owns and develops commercial properties in the retail and tourism sectors.

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