Financial quicksand
After its $2 billion proposed bond float failed last February, Vista Land and Lifescapes Inc. (VLL) has shifted to domestic floats.
VLL plans to raise a more modest P5 billion through the sale of Series 2 preferred shares. The Villar group company is raising funds primarily to refinance its mounting bank debts.
The $2 billion bond sale was canceled due to lackluster investor demand, despite the high yield of 9 percent. The proceeds were intended for refinancing, working capital, investment, and other general corporate purposes.
According to VLL’s last annual report, the company has P32.7 billion in debt maturing this year.
The proceeds from the October float will be used to refinance loans owed to BDO Unibank, Security Bank, China Banking Corp., and various holders of corporate notes.
VLL aims to sell 30 million perpetual, cumulative, non-participating, non-voting, redeemable, and non-convertible shares, with an over-allotment option for 20 million shares at P100 each. Preferred shares pay fixed dividends and have priority over common shares in asset distribution but typically lack voting rights.
According to the latest deal circular, VLL has set a target listing date of October 4.
For the preferred shares offer, VLL has hired BDO Capital & Investments, China Bank Capital, and SB Capital as joint issue managers, joint lead underwriters, and joint bookrunners.
Earlier this month, VLL raised P20 billion from the sale of corporate bonds, with proceeds intended to cover debts due in November.
Media’s bad hair day
A medical mission and outreach program organized by League of Municipalities of the Philippines (LMP) President Emeritus Luis Chavit Singson and his daughter, Ilocano Ako Partylist Representative Richelle, at the Quezon City Jail in Payatas did not go as planned for the media covering the event.
Legitimate broadcast and print media members were treated poorly by some jail guards at the facility entrance.
As early as 8 a.m. on Saturday (14 September), reporters, photographers, and cameramen arrived for the event, only to be barred from entering by burly jail guards who said only those whose names had been relayed to them would be allowed entry.
Upon arrival, one of Singson’s aides had a heated argument with a jail guard identified by the name patch as Ver. The guard berated the media and the coordinator, insisting they should not enter the premises.
The incident was reported to jail spokesperson Jonathan Dasig, who could not explain the restriction on media coverage.
A reporter contacted Jail Warden Waren Geronimo, prompting him to meet with the media and explain that there had been no prior coordination with Singson’s camp regarding the number of media personnel.
Geronimo allowed a limited number of journalists to enter the facility but said he was only aware that three media representatives were expected for the charity project.