June 03, 2013

SMC secures $1-B loan to pay debts

San Miguel Corp. (SMC) has secured a $1-B loan from five banks to pay off its existing debts. The company intends to avail of an additional $200 M through the exercise of the greenshoe option under the facility to maximize available funding under a $1.3-B, five-year loan agreement.

To date, of the total amount available under the facility, the company has drawn $1 B to pay in full and refinance its existing $1-B loan. SMC’s net income sank by half to P4.2 B in the first quarter from P8.5 B a year ago, trimmed by lower equity earnings, higher interest expense and a decline in foreign exchange, with net income before controlling interest slumping 34% to P7.59 B. - WealthSec