PHILIPPINE Airlines Inc. (PAL) has raised $300 million from its first international bond offering, drawing strong investor demand for the five-year, senior unsecured guaranteed notes.
In a statement on Wednesday, PAL said the issuance was made through wholly owned subsidiary Primero Agila Ltd., a Cayman Islands exempted company, and attracted over $1.4 billion in orders or more than 4.5 times the base offer.
“The notes will be unconditionally and irrevocably guaranteed by PAL and Air Philippines Corp. and will be listed on the Singapore Exchange Securities Trading Limited,” the airline said.
The settlement date is scheduled on July 16, subject to customary closing conditions.
The bonds carry a coupon rate of 7.75 percent per annum and will mature on July 16, 2031.
PAL Holdings President Lucio C. Tan III said proceeds from the issuance would be used to support the airline’s long-term growth plans.
“This landmark bond offering is a powerful affirmation of Philippine Airlines’ transformation and the confidence that global investors have in our long-term vision and growth ambitions,” he said.
PAL President Richard Nuttall said the level of investor demand reflected confidence in the airline’s business.
“We are grateful for the overwhelming support we received from investors globally, which we see as a vote of confidence in PAL’s long-term strategy, market position and growth outlook,” he said.
Deutsche Bank served as sole global coordinator and rating adviser for the transaction, while BNP Paribas acted as joint bookrunner.
Shares of PAL parent firm PAL Holdings Inc. dipped P0.05, or 1.92 percent, to close at P2.55 each on Wednesday.