Lopez-led power and infrastructure conglomerate First Philippine Holdings Corp. (FPHC) on Monday said, proceeds from the sale of its perpetual preferred shares will be used to pay off maturing debts.

In a disclosure to the stock exchange, FPHC said it will pay P42.79 million or $876.9 million for the interest accrued on its $16.1 million Floating Rate Notes facility set to mature this October.

The infrastructure holding firm of the Lopez group in its prospectus filed with the SEC said, it will first sell 30 million cumulative, non-voting, non-participating, non-convertible peso-denominated series B perpetual preferred shares. Each share has a par value of P100 and a liquidation right equivalent to P100.

FPHC will issue the series-B shares from its 200 million authorized preferred capital. It has a dividend yield of 7.5 - 8 percent per annum.

Apart from debt payments, First Holdings said it will use part of the money for strategic acquisitions as well as other capital and operating needs.

BDO Capital and Investment Corp. was the issue manager for the sale.

As of March 25, the Lopez group's private investment arm, Lopez Inc. holds 43.05 percent of FPHC, while the public owns 54.64 percent. Others account for 2.31 percent.
 

abs-cbnnews.com is the online news arm of ABS-CBN News. FPHC and ABS-CBN are both part of the Lopez Group of companies.