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Petron to buy $22.47M of its debt securities

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PETRON Corp. is buying $22.47 million of its outstanding senior perpetual capital securities listed in Singapore after its offer to holders of its debt ended last week, the oil company said on Monday.

In a regulatory filing, the listed company said that it had received valid tenders to its offer amounting to a total of $37.48 million of its securities listed on the Singapore Exchange Securities Trading Ltd.

Petron said it is buying the securities at $927 per $1,000 in principal amount. The deadline for its tender offer was on Jan. 12, 2023.

The company said that it set a deadline for the settlement of payment on Jan. 19, adding that its offer for the $22.47 million should be received on or before that date.

Petron also said that it targets “to deliver all securities acquired to the tender offer to the registrar for prompt cancellation.” After the purchase, its outstanding securities will be down to $477.53 million.

On Jan. 4, Petron said that it was offering to buy up to $50 million of its outstanding senior perpetual capital securities, which is a part of its $500-million outstanding US dollar-denominated debt issued on Jan. 19, 2018.

In a previous regulatory filing, Petron said that it set a timeline of two weeks from the start of the offer period until the payment date. It set the start date on Jan. 4, with the expiration deadline on Jan. 12, unless extended or terminated by the company, while the payment date was scheduled on Jan. 18.

Earlier this month, Petron secured the approval of the Securities and Exchange Commission on its planned biofuels venture that will allow the company to construct and operate a coco-methyl ester plant and secure relevant permits for the project.

Petron operates the remaining refinery in the country that provides 40% of local petroleum requirements. Its refinery in Bataan produces 180,000 barrels per day.

It also has about 50 terminals and around 2,700 service stations where it sells gasoline and diesel. Its combined refining capacity is 268,000 barrels a day, producing fuels and petrochemicals.

At the local bourse on Monday, Petron’s shares closed 0.40% lower or P2.49 apiece. — A.E.O. Jose