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May 9, 2016 @ 22:55

Roxas Holdings to prepay P750M in short term loans from rights offer proceeds

Roxas Holdings Inc., an integrated sugar company that has diversified into bioethanol and cogeneration, will use almost three fourths of the proceeds of its stock rights offer to prepay a P750-million short term loan from the Bank of Philippine Islands, the company said in a disclosure.

The short term loan from BPI totalled P1.6 billion as of the end of February 2016 and carried an interest rate of three percent. The loan was used to finance the company’s acquisition of San Carlos Bioenergy Inc. Roxas Holdings interest expenses amounted to P271 million last year, with liabilities totalling P12 billion.

Roxas Holdings, Inc. (“RHI”) is an integrated sugar company that has expanded its business interests to include bioethanol and co-generation.

The remaining P350 million from the rights offer is allocated for capital expenditure.

Roxas Holdings expects to generate some P1.11 in net proceeds from the new shares it will be issuing from May 12 to May 18 that will be available to stockholders on record as of May 4.

Roxas Holdings has an authorized capital stock of P1.5 billion consisting of 1.5 billion common shares with a par value of P1 each. The company has a little over P1.155 billion common shares issued and subscribed.

The rights offer will involve some 266.75 million shares and the shares offered are at P4.19 per share. Shareholders on record as of May 4 have the right to buy one share for every 4.33 common shares held. (Eileen A. Mencias)



 

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