Puregold sets new terms on notes issue

Posted at 09/28/2012 7:52 AM

MANILA, Philippines - Puregold Price Club Inc., the country’s second-biggest supermarket chain, has released additional terms for an upcoming fixed-rate notes offering that could raise up to P8 billion, including an oversubscription option.

The company said in a Philippine Stock Exchange filing that the debt will be issued in two tranches of 5-year and 7-year debt. The base offer is at P5 billion with a greenshoe option for another P3 billion. The deal will be arranged by First Metro Investment Corp.

Puregold will also have the option to redeem notes on any interest payment date beginning the third and fourth anniversaries of either tranche, the disclosure showed.

Interested investors are required to give firm commitments from October 8 to October 12, the disclosure said, with final allocation also set on October 12. The debt will be priced on October 19.

Puregold said earlier that proceeds are earmarked to finance new store-roll outs, organically and via acquisitions.

The company upgraded its expansion target to 31 new stores this year from the original 25. It opened nine new stores in the first half bringing the total network count to 134 branches. Recent acquisitions include the upscale S&R Membership-Only shopping chain and Parco.

Puregold shares added 0.5 percent to P29.75 per share, giving the retailer a market value of P82.3 billion on Thursday.