Phoenix Petroleum sets P7 billion CP issue

Listed independent oil player Phoenix Petroleum Philippines Inc. is planning to issue new commercial papers (CP) of up to P7 billion.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum’s board approved the registration of commercial papers with an aggregate principal amount of P7 billion.

The firm said this would include the offer and listing of commercial papers with an aggregate principal amount of up to P2 billion and an over- subscription option of up to P1.5 billion.

“We have a new registration for P7 billion of which part is the P3.5 billion,” Phoenix Petroleum company vice president for external affairs Raymond Zorrilla said in a text message.

The new program would be used “for working capital requirements, in particular regular importation of fuels,” Zorrilla said.

Phoenix Petroleum would file relevant applications for the commercial papers with the Securities and Exchange Commission (SEC) and the Philippine Dealing & Ex- change Corp. (PDEx).

Last month, the oil firm offered the CP Series D with an aggregate principal amount of up to P2 million with an oversubscription option of up to P1.5 million at a discount to face value of five percent per annum.

It was supposed to be is- sued on July 29, but was postponed upon recommendation of PNB Capital and Investment Corp., the sole issue manager, lead arranger and sole bookrunner of the offer.

“The listing of the CP Series D will be resched- uled due to the delay in the completion of the require- ments for the registration and listing of CP Series D. The corporation and PNB Capital will update you on further developments,” it said.

Proceeds of CP Series D would be used “primarily to finance working capital requirements of the Issuer for the regular importation of fuels and lubricants,” the oil firm said.

The CP Series D is the fourth tranche of the oil firm’s P10-billion CP program until 2021.

The initial issuance of the P10-billion CP program was done in December last year in the amount of P7 billion under Series A and B.

The firm already repaid the P3.5-billion CP Series 1-A and CP Series 1-B.

In August last year, Phoenix Petroleum issued P3.5 billion worth of CP under Series B to support funding requirements for importation. It again is- sued another P3 billion worth of CP Series C.

The company had used the CP program to refinance its existing short-term loans, which were used in financing regular importation of fuels and lubricants.

-Danessa Rivera (The Philippine Star ) 

Source: Peso Economics