Megaworld (MEG) is facing bond maturities in the amount of 25.6 billion as reflected in their first quarter financial statements.
In 2013, MEG issued a US$250 Million 10-year bond due 2013. Another bond due 2014, is a 7-year local bond issued by MEG in 2017.
No disclosures and press releases as to how these bond maturities will be settled were made by MEG. MEG’s silence on these bond maturities has dragged its shares down. MEG’s share price is stuck at the 2 Peso level.
Although MEG has been silent on these bond maturities, it is moving toward their eventual settlement. MEG is using its value crystallization machine, MREIT, to realize the value of its investment property portfolio.
In April 2023, MEG executed a property-for-shares swap valued at 5.3 billion with MREIT. MEG will transfer to MREIT four grade A buildings located in PEZA-registered zones for 263,700,000 MREIT common shares. As a result, MEG’s direct ownership over MREIT will increase to 65.7%.
Recently MEG and MREIT have been discussing a new round of asset infusion worth around 15 billion.
Once the property-for-share swaps are done, expect MEG to make a private placement of some of its MREIT shares. The proceeds of the placement will allow MEG to release its cash pile for debt settlement and the proceeds for reinvestment.
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MEG: “In 2013, MEG issued a US$250 Million 10-year bond due 2013. Another bond due 2014, is a 7-year local bond issued by MEG in 2017.”
Should be “… bond due 2023. And another bond due 2024,…”