SAN MIGUEL CORP. (SMC) has extended until Oct. 22 the deadline for bondholders to give their consent to proposed amendments to several bond terms, which would allow the conglomerate to use its shares in New NAIA Infra Corp. as collateral for project financing.
In a disclosure to the Philippine Stock Exchange on Wednesday, SMC said the expiration date for its consent solicitation covering multiple fixed-rate bonds has been moved from Oct. 8 to Oct. 22 at noon, giving record bondholders additional time to review the consent solicitation statement and compile the necessary documents.
“Record bondholders who have previously delivered consents do not need to redeliver such consents nor take any other action in response to this announcement,” the company said.
The consent solicitation involves several outstanding bonds maturing between 2027 and 2034, including the 5.7613% Series C bonds due 2027, 7.1250% Series G bonds due 2028, 7.4650% Series I bonds due 2027, 5.2704% Series J bonds due 2027, 5.8434% Series K bonds due 2029, 7.4458% Series L bonds due 2028, 7.8467% Series M bonds due 2029, 8.4890% Series N bonds due 2032, 7.2584% Series O bonds due 2033, and 7.7197% Series P bonds due 2034.
The initiative, first disclosed on Sept. 8, seeks bondholder approval to waive certain negative covenants and amend trust agreements, enabling SMC’s infrastructure arm, San Miguel Holdings Corp., to pledge its equity in New NAIA Infra Corp. for a loan related to the Ninoy Aquino International Airport (NAIA) rehabilitation project.
The proposed amendments also include raising the ownership threshold in the definition of “material subsidiary” from 25% to 30% and expanding the definition of “permitted liens” to accommodate project financing arrangements.
SMC said the revisions aim to align its bond terms with standard project finance structures while maintaining non-recourse debt at the parent level.
On Wednesday, shares of San Miguel Corp. fell by 0.44% or 25 centavos to close at P56.75 each. — A.G.C. Magno
