San Miguel launches tender for $600 million exchangeable bond

The Philippine conglomerate says it will pay up to 107.75 per bond. The deadline is set for January 29 and its shares will be suspended from trading until then.

San Miguel Corp, the Philippine conglomerate whose businesses range from beer and food to oil, power and infrastructure, has launched a tender offer for its exchangeable bonds that mature in May 2014. The bonds, which are exchangeable into treasury shares held by the company, pay a 2% coupon and have an outstanding face value of $600 million.

The tender will be conducted through a Dutch auction, which means that the bondholders can offer to tender their bonds at whatever price they find suitable. However, the company has set a maximum price of 107.75 per bond. This means it may have to pay up to $646.5 million to buy back the...

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