SEC Approves NLEX’s P25-B Shelf Registration

The Securities and Exchange Commission (SEC) has approved the shelf registration of NLEX Corporation for fixed-rate bonds worth PHP25 billion, which it will offer in several tranches within three years.

In a document released Wednesday by SEC, NLEX’s initial issue will be worth PHP4 billion with an oversubscription option of PHP2 billion, proceeds from this tranche will be used to fund a portion of the construction costs for the R-10 Section project and for other general corporate purposes.

The PHP6.6-billion R-10 Section Project is a 2.6-kilometer elevated toll road which will extend the C-3 Road exit ramp of Segment 10 to R-10 Road near the Port Area.

Project construction is expected to commence within second quarter of 2018.

Series A bonds are due 2025, while Series B bonds are due 10 years from the issuance.

The BDO Capital & Investment Corp. has been tapped as issue manager, bookrunner, and joint lead underwriter.

First Metro Investment Corp. will also serve as joint lead underwriter.

NLEX may issue the remaining bonds in tranches within the shelf period. (PNA)