Ayala Corporation announces new notes offering and tender offer

Ayala Corporation (PSE: AC), one of the largest conglomerates in the Philippines, has mandated BPI Capital Corporation, Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Limited, J.P. Morgan (S.E.A.) Limited, Mizuho Securities (Singapore) Pte. Ltd. and UBS AG Singapore Branch as Joint Lead Managers and Joint Bookrunners, to arrange a series of fixed income investor calls on 15 September 2021 and the offer of a Regulation S USD-denominated senior fixed-for-life (non-deferrable) perpetual notes (the “Notes”) subject to market conditions.

The Notes will be issued by AYC Finance Limited (the “Issuer” or “AYC”), a wholly owned subsidiary whose ordinary shares are 100% held directly by AC, and will be unconditionally and irrevocably guaranteed by AC.

The Issuer has also announced a concurrent tender offer of its US$400,000,000 5.125% senior fixed-for-life notes (ISIN: XS1681502537) and US$400,000,000 4.85% senior fixed-for-life notes (ISIN: XS2068075980), each subject to a maximum acceptance amount to be announced by the Issuer (together, the “Tender Offer”). The Tender Offer will expire at 4:00 p.m. (London Time) on 24 September 2021.

Proceeds of the Notes issuance will be used to refinance the Issuer’s (i) outstanding USD-denominated guaranteed undated notes including, among others, through funding of the Tender Offer, and (ii) other USD-denominated obligations.

The Notes issuance and the Tender Offer are part of AC’s active liability management exercise that aims to take advantage of capital markets opportunities if and when they arise.