Ayala, AYC Finance plan notes issue, tender offer

AYALA Corp. is planning the offer of dollar-denominated perpetual notes to be issued by wholly owned subsidiary AYC Finance Ltd., which is also eyeing a tender offer.

“The notes issuance and the tender offer are part of AC’s (Ayala’s ticker symbol) active liability management exercise that aims to take advantage of capital markets opportunities if and when they arise,” the listed company said in a disclosure to the exchange on Wednesday.

The conglomerate said its Regulation S dollar-denominated senior fixed-for-life non-deferrable perpetual notes will be issued by AYC Finance. 

Ayala has assigned BPI Capital Corp, Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Ltd., JPMorgan (S.E.A.) Ltd., Mizuho Securities (Singapore) Pte. Ltd., and UBS AG Singapore Branch as the joint lead managers and joint bookrunners.

The company said it mandated the firms to “arrange a series of fixed income investor calls” on Sept. 15.

Meanwhile, AYC Finance will conduct a tender offer of its $400-million 5.125% senior fixed-for-life notes (ISIN: XS1681502537) and $400-million 4.85% senior fixed-for-life notes (ISIN: XS2068075980). It will set a maximum acceptance amount for the tender offer, which will expire on Sept. 24 at 4:00 p.m. London time.

“Proceeds of the notes issuance will be used to refinance [AYC Finance’s] outstanding USD (US dollar)-denominated guaranteed undated notes including, among others, through funding of the tender offer, and other USD-denominated obligations,” the listed company said.

Shares of Ayala on Wednesday went down by 0.93% or P7.50, closing at P803 each. — Keren Concepcion G. Valmonte