October 22, 2014

PCOR preferred shares dividend rate set at 6.3% and 6.8583%

Further to last month’s news on Petron Corp’s (PCOR) preferred share offering, the company on Monday began offering the preferred shares in two tranches. The offering comprises 7m preferred shares priced at P1,000 each, with an oversubscription option of up to 3m shares. The dividend rate is set at 6.30% for the five-year series and 6.8583% for the seven-year series.

Both tranches are reportedly priced at the tight end of guidance, with the five-year priced at 250 bps over the 5-year PDST benchmark (from a range of 250-300 bps) and the seven year 300 bps above the 7-year PDST (from a guidance of 300-350 bps). Proceeds of the preferred share issuance will be used to fully pay off the P10b preferred shares callable next year.