Petron Corp., the bigger of the two oil refiners, received consent to refinance $750 million in undated subordinated capital securities issued in 2013.
“Undated subordinated capital securities of the company was duly passed by the requisite majority of holders of the securities. Accordingly, the company and the trustee entered into a supplemental deed amending certain terms and conditions of the securities and the trust deed,” Petron said in a disclosure.
The management of Petron Corp. authorized the solicitation of consents from the holders of the company’s $750-million undated subordinated capital securities in October.
The securities are listed on The Stock Exchange of Hong Kong Ltd. Petron has sought approval of certain amendments to the trust deed dated February 6,2013 as amended and supplemented from time to time.
“The company intends to issue new undated capital securities to repurchase, refinance and/or redeem the 2013 securities and is seeking the proposed amendments by way of the consent solicitation to confirm its ability to issue the new securities,” Petron said.
Petron said the new securities were expected to be senior to the 2013 securities.
The company issued the undated subordinated capital securities in two tranches at $500 million and $250 million, respectively, in 2013.
Petron, controlled by San Miguel Corp., owns a 180,000 barrel-per-day refinery in Bataan
The company is pursuing the expansion of the Bataan refinery and plans to lease land on the industrial park of PNOC Alternative Fuels Corp. in Limay, Bataan.
The company offered to lease the property from state-run Philippine National Oil Co., which now operates the industrial park.
“The plan is to expand the refinery from 180,000 barrels a day to 300,000 barrels a day,” Petron president Ramon Ang earlier said.
Ang said expanding the existing refinery would be “faster and cheaper” for the company.
“Land required for this expansion is about 100 hectares, of which some can come from PNOC and most of the other properties are owned by other people, which, if we can acquire it by lease or acquisition…, we will consider to expand the refinery,” he said.
He said the refinery expansion on a new site woild cost around $15 billion to $20 billion.