GT Capital plans to raise P12B to pay bank loans
MANILA, Philippines – GT Capital Holdings Incorporated plans to start raising P12 billion in September, mainly to pay the bank loans it used to finance its acquisition of an additional stake in Property Company of Friends Incorporated (Pro-Friends) and a recent investment in Metro Pacific Investments Corporation (MPIC).
Based on the registration statement it filed with the Securities and Exchange Commission (SEC), GT Capital plans to sell 8 million Series "A" and "B" perpetual preferred shares, with an oversubscription of up to 4 million shares at an offer price of P1,000 per share.
In total, this will raise as much as P12 billion in proceeds.
The George Ty-owned conglomerate told the SEC that First Metro Investments Corporation will be the sole issue manager and underwriter for the deal.
At least P9 billion will be used to pay short-term loans, which the company availed of from 4 banks to bridge finance the acquisition of an additional stake in mass housing firm Pro-Friends as well as its recent investment in MPIC.
The 4 banks were Philippine National Bank, Security Bank, Bank of the Philippine Islands, and Development Bank of the Philippines.
Some P2.9 billion of the expected proceeds will also be used for other corporate purposes including interest payments, capital expenditures, capital calls, and new investments.
GT Capital last week subscribed to an additional 28.3% equity with Pro-Friends worth P8.76 billion. This increases GT Capital's economic stake in Pro-Friends to 51% from 22.7%.
The conglomerate's move to hike its investment in Pro-Friends is in line with its plan to expand its property product offerings, ranging from Federal Land's upper-mid end developments to Pro-Friends' more affordable residential and mixed-use communities.
In May, MPIC formed a strategic alliance with GT Capital by swapping shares and acquiring a majority stake of the latter's power generation unit.
Meanwhile, the perpetual preferred shares are cumulative, non-voting, non-participating, non-convertible, and peso-denominated.
GT Capital targets an offer period of September 19 to September 23; while the listing date has been tentatively set on September 28.
The conglomerate, which has investments in the automotive, real estate, banking, power generation, and insurance sectors, said it will file the appropriate registration statement and prospectus for its fund-raising activity with the SEC.
The shares will be listed under the main board of the Philippine Stock Exchange.
The share price of GT Capital on Tuesday, July 5, closed at P1,460 apiece, down 0.88% from the previous day's close. – Rappler.com