Philippines' SM Investments to issue bonds due 2017 in exchange offer

By Susanna Moon

Chicago, Sept. 22 - SM Investments Corp. said it began an offer to issue up to $500 million fixed-rate bonds due 2017 in exchange for its $350 million of 6¾% bonds due 2013 and $500 million of 6% bonds due 2014.

For each $1,000 principal amount, the exchange price will be $1,095 for the 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.

The coupon for the new issue will be announced Oct. 6.

The offer will end at 11 a.m. ET on Oct. 5.

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

The company is also offering the new notes for cash. The maximum amount of new notes to be issued in the tender offer and the cash offering is $500 million, and the tender offer is conditioned on at least $300 million of the new bonds being issued.

The purpose of the exchange offer is to extend the maturity of some debt maturing in 2013 and 2014 to 2017 and to take advantage of favorable market conditions, according to a company press release.

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) are the joint dealer managers and joint lead managers. 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) is the joint dealer manager and co-manager.

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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