The international law firm Milbank, Tweed, Hadley & McCloy LLP advised on a landmark capital markets transaction for Ayala Corporation (AC).
Milbank advised Deutsche Bank, HSBC and J.P. Morgan as joint lead managers in connection with the issuance of US$400 million guaranteed undated notes by AYC Finance Limited (a wholly owned subsidiary of AC), unconditionally and irrevocably guaranteed by AC. The annual coupon for the notes was 5.125% for life with no step-up provision. The offering was more than five times oversubscribed with strong demand from Asia, Europe and the Philippine domestic market. BPI Capital Corporation and Chinabank Capital Corporation acted as domestic lead managers for the transaction.
The transaction is significant in several respects, being the first corporate issuance of non-deferrable "fixed-for-life" perpetual securities with no step-up in Southeast Asia. The issuance also represented the first “fixed-for-life” issuance with no step-up or reset provision out of the Philippines.
AC is one of the oldest and largest conglomerates in the Philippines, with interests in real estate, financial services, telecommunications, water, industrial technologies, power generation, infrastructure, healthcare and education.
Global capital markets partner James Grandolfo noted, “This landmark and innovative transaction demonstrates the strength of Milbank’s debt capital markets expertise in the region. The reception of this transaction is a testament to the strength of the Ayala name with international investors along with significant confidence in the Philippine economic story. We are extremely pleased to have advised on Ayala’s resounding return to the international capital markets.”
The Milbank team for the transaction was led from Hong Kong by partner James Grandolfo and counsel Paul Pery, with support from associates Adam Heyd and York Wu.
