GT Capital set to redeem perpetual preferred shares

GT Capital Holdings, Inc. will redeem its Series A perpetual preferred shares on Oct. 27, the listed conglomerate said on Tuesday.

In a stock exchange disclosure, the company said the redemption of the shares is in accordance with the terms and conditions of the final prospectus of the offering dated Oct. 14, 2016. 

“The redemption is consistent with the terms and conditions in the prospectus, which provides that GT Capital has the option, but not the obligation to redeem in whole (but not a part of) the Series A perpetual preferred shares on the fifth anniversary of the issue date, or any dividend payment date occurring thereafter,” the company said.

According to GT Capital, the exercise of the redemption option will be completed by the payment of the redemption price at P1,000 plus any accrued and unpaid dividends after deduction of any taxes and customary transfer costs to effect the redemption.

“Administrative costs and expenses, including the cost of checks used, suppliers, paying agent services, courier and mailing costs in relation to effecting the redemption shall be for the sole account of the corporation,” the company said.

Meanwhile, GT Capital said the proceeds from the redemption of the Series A perpetual preferred shares will be paid starting on the redemption date, which is on Oct. 27.

Following the redemption, the shares will be considered retired. 

The Series A perpetual preferred shares is part of GT Capital’s offering done in 2016 with a base offer of 8 million cumulative, nonvoting, nonparticipating, and nonconvertible perpetual preferred shares priced at P1,000 apiece, with an oversubscription option of up to 4 million shares. The company raised P12 billion from the offering. 

GT Capital’s issuance sought to raise funds to refinance previous acquisitions paid through bridge financing and to fund “strategic acquisitions.”

In the first half, GT Capital’s net income more than doubled to P16.61 billion from P8.1 billion a year ago due to improved performances of its core businesses. 

The company has business interests in sectors such as banking, automotive assembly, importation, distribution, financing, property development, life and non-life insurance, infrastructure, and utilities.

On Tuesday, shares of GT Capital at the local bourse fell P21.50 or 3.67% to close at P565 apiece. — Revin Mikhael D. Ochave