Ayala Corp. to redeem P10-B fixed-rate multiple put bonds

AYALA CORP. plans to fully redeem its P10-billion, 6.80% fixed-rate multiple put bonds due 2021 on the bonds’ maturity date, May 12.

“The bonds shall be redeemed by payment in cash of the redemption price set at 100% of the issue price plus all accrued and unpaid interest based on the coupon rate of 6.80% per annum,” the company said in a disclosure to the exchange on Tuesday.

Of the P10-billion fixed-rate multiple put bonds, Ayala has an outstanding balance of about P9.9 billion, with a net of P96.6 million redeemed by bondholders in 2019 by exercising a put option.

“Amounts due to such redemption will be paid by the issuer [through] the Philippine Depository & Trust Corp. as paying agent, in the customary manner for payments by the issuer on the bonds prior to the maturity date,” the company said in its notice of bond redemption.

Payments to bondholders will be made on its record date, May 7. No secondary trading of the bonds or modifications in the accounts will be made starting on the record date.

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The bonds’ listing on the Philippine Dealing & Exchange Corp. will be terminated once it has been redeemed on its maturity date.

AREIT CAPITAL HIKE
Meanwhile, the board of directors of Ayala Land, Inc.’s real estate investment trust AREIT, Inc. has approved to increase AREIT’s authorized capital stock to P29.5 billion from P11.74 billion.

In a disclosure to the exchange, AREIT’s board of directors also approved a property-for-share swap transaction plan worth P32 per share. This involves the subscription of Ayala Land to 483.25 million primary common shares of AREIT in exchange for key Ayala Land commercial properties worth a total of P15.46 billion.

The swap transaction will increase AREIT’s leasing portfolio to 549,000 square meters (sq.m.) from 344,000 sq.m., bumping up its deposited property value to P52 billion from P37 billion.

Both plans are still subject to the approval of AREIT shareholders and of regulatory bodies.

“The transaction, including the information on the involved assets, will be indicated in the definitive information statement which shall be made available by AREIT to its shareholders by March 31,” AREIT said.

Disclosure forms will be submitted to the Philippine Stock Exchange once approval from shareholders is secured and once the Deed of Exchange has been executed.

Ayala shares at the exchange improved by 3.27% or P24 on Tuesday to close at P757 apiece. Meanwhile, AREIT shares increased by 2.36% at the market to finish at P32.50 from P31.75. — Keren Concepcion G. Valmonte

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