Petron bondholders swap $333M into new notes, tender $54M for cash

ANG-LED Petron Corp. reported strong preliminary participation in its recently completed exchange and tender offers for its $550-million 5.95% Senior Perpetual Capital Securities.

As of the Sept. 12 deadline, holders tendered $333.19 million for exchange into new securities and $54.2 million for cash, reducing the outstanding old bonds to about $162.6 million, the company said in a disclosure on Monday.

The exchange and tender offers allow securityholders to either swap existing securities for new ones or sell them back for cash, under the terms outlined in the Exchange and Tender Offer Memorandum. Investors who opt for the exchange will receive $1,000 worth of new securities plus any accrued distributions.

The new senior perpetual notes carry a minimum initial rate of 7.35% per year, up from the previous 5.95%, and include an optional redemption in September 2028.

Petron said the initiative helps optimize its capital structure, extend repayment timelines on existing obligations, and refinance operations, while supporting its fuel, refining, and retail businesses.

The offers were conducted offshore and are not registered for sale in the United States or in jurisdictions where such offers would be unlawful. Completion depends on meeting or waiving financing and other conditions, and the company reserves the right to modify, withdraw, or cancel the offers at its discretion.

On Monday, Petron shares were unchanged at P2.43 apiece. — Alexandria Grace C. Magno