San Miguel Brewery seeks consent to change bond terms
San Miguel Brewery Inc. (SMB) is seeking consent of bondholders to align all outstanding bonds amid the reorganization of parent firm San Miguel Corp.’s food and drinks businesses under San Miguel Pure Foods Corp.
In a statement, SMB said it was seeking the approval of bondholders for proposed amendments to the trust agreement dated March 16, 2009 covering its outstanding 10.5% Series C Bonds due 2019, outstanding 5.93% Series E Bonds due 2019, and 6.6% Series F Bonds due 2022.
The rationale behind this is to ensure that the trust agreements remain consistent with their original intended purpose that SMB continues to be under the effective control of its parent company, San Miguel Corp.
The consent solicitation begins on Nov. 22, and ends on Dec. 14, 2017.
SMB will pay each consenting record bondholder who delivers a validly executed consent form to the relevant trustee of the bonds on or before the expiration date a consent fee of ₱1.25 per ₱1,000 of the principal amount of the bonds.
The payment of the consent fee is conditioned on, among others, receipt of validly executed consent forms from bondholders representing at least 51% of the aggregate principal amount of the Series C Bonds and the combined Series EF Bonds on or before the expiration date.