ALSONS Consolidated Resources, Inc. (ACR) has secured approval from the Securities and Exchange Commission (SEC) to issue P3 billion worth of commercial papers.
The commission has issued a certificate of permit to offer securities for sale, consisting of a base offer of P1.2 billion and an oversubscription of up to P400 million worth of commercial papers under the first tranche, the company said in a stock exchange disclosure on Monday.
Commercial papers refer to short-term debt securities issued by corporations to raise funds for immediate financial needs, such as paying off short-term liabilities or covering operational expenses.
“The company intends to use the proceeds from the offer to refinance its maturing short-term obligations and for working capital purposes,” ACR said in its latest prospectus.
The commercial papers are targeted for issuance on Feb. 10 and are intended to be listed on the Philippine Dealing & Exchange Corp. (PDEx).
The offer period will start upon or immediately after issuance by the SEC of the permit to sell and will end 15 working days after the start of the offer period or earlier, as deemed appropriate, the company said.
The company has tapped RCBC Capital Corp. as the issue manager, lead underwriter, and bookrunner for the program. MIB Capital Corp. will serve as the arranger, while AB Capital and Investment Corp. will be the facility agent.
Last year, ACR raised P516.7 million from the fourth tranche of its P3-billion commercial paper program with PDEx. The funds raised were intended for the company’s general working capital purposes.
The company maintained its issuer credit rating of PRS Aa minus (corp.) with a stable outlook from the Philippine Ratings Services Corp. This rating highlights ACR’s strong capacity to meet its financial commitments relative to other Philippine corporates.
ACR, which claims to be Mindanao’s first independent power producer, has a portfolio of four power plants with a combined capacity of 468 megawatts (MW).
With its first foray into renewable energy, the company anticipates the commercial operations of its 14.5-MW run-of-river hydroelectric power plant in Maasim, Sarangani, this year while developing two more hydropower plants. — Sheldeen Joy Talavera