San Miguel Brewery wants to make non-alcoholic drinks

San Miguel Brewery Inc., the beer-making unit of diversified conglomerate San Miguel Corp., is asking its bondholders to allow brewer to diversify into non-alcoholic beverages.

 

In an e-mailed statement, San Miguel Brewery said it is sending out solicitation for the proposed amendments to the following bonds issuances:

 

the Trust Agreement dated March 16, 2009 the 10.5 percent Series C Bonds due 2019

 

the Trust Agreement dated March 15, 2012 covering its outstanding 6.05 percent Series D Bonds due 2017, 5.93 percent Series E Bonds due 2019, and 6.60 percent Series F Bonds due 2022.

 

"The proposed amendments will enable SMB to pursue its multi-beverage strategy and create consistency among the SMB’s debt facilities," the beer maker said.

 

In a solicitation statement posted on its website, the brewer said its board approved "a multi-beverage strategy and expansion into the non-alcoholic beverage business," which is seen to have a larger share of consumption.

 

The amendments will also allow the company to align the bond offering to its more recent Series G and H bond offerings. 

 

The consent solicitation began on January 5 and will expire at 5 p.m., January 30. 

 

The brewer said it reserves the right to change the dates.

 

The company will pay each consenting bondholder of record as of December 15, 2014 a consent fee of P1.25 per P1,000.00 of the principal amount of their bond subscriptions.

 

"Payment of consent fees to consenting bondholders is conditional upon, among others, the submission of validly-executed Consent Forms delivered in time for receipt by the Trustee on or before the Expiration Date," the beer maker said.

 

ING Bank N.V., Manila Branch was appointed as advisor for the consent solicitation.

 

BDO Capital and Investment Corp., BPI Capital Corp., China Banking Corp., The Hongkong and Shanghai Banking Corporation Limited, and SB Capital Investment Corp. were tapped as associates.

 

Bank of the Philippine Islands-Asset Management and Trust Group is the trustee for the Series C Bonds and Rizal Commercial Banking Corporation-Trust and Investments Group for the Series DEF Bonds.

 

The Philippine Depository & Trust Corp. is the registrar for the consent solicitation. – Danessa O. Rivera/VS, GMA News