Vista Land subsidiary secures $150-M loan
A subsidiary of real estate firm Vista Land and Lifescapes Inc. has secured a $150-million loan to repay existing debt and fund operating expenses.
In a stock exchange filing on Monday, the company led by billionaire Manuel Villar said VLL International Inc., its wholly owned subsidiary created for the purpose of issuing debt papers, had obtained the syndicated term loan facility with an interest rate of 6.40509 percent per year.
The loan agreement was signed with Sumitomo Mitsui Banking Corp. Singapore Branch and Sumitomo Mitsui Banking Corp.
Under their deal, the loan facility is guaranteed by Vista Land and its subsidiaries: Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vistamalls Inc. and Vista Residences Inc.
This means that should VLL default on its loan, repayment will be shouldered by the guarantors.
“The proceeds of the term loan facility will be used for financing, refinancing or reimbursing [directly or indirectly]working capital and general corporate purposes of the VLL Group,” Vista Land said in its disclosure.
This comes nearly a year after VLL raised $300 million from an overseas debt issuance, which it had pursued at a high rate of 9.375 percent per annum. The rate was above the average market price of 6.5 percent, meaning that VLL’s borrowing cost was more expensive.
Back then, VLL was racing to get funds to refinance a maturing $350-million debt due in November 2024, according to CreditSights.
The five-year notes issued by VLL were unrated by credit rating companies, implying a high-risk issuance for investors.
In the January to September 2024 period, Vista Land’s net income climbed by 10 percent to P9.1 billion, buoyed by improved foot traffic in its commercial projects and gains from estates in the provinces.
The company’s top line also rose by 7 percent to P29.1 billion as real estate revenue climbed by more than a tenth to P13.6 billion.
As of end-September, the property giant has launched P32.6 billion worth of projects across the country, with reservation sales reaching P58.4 billion.
Vista Land has yet to disclose its full-year financial report.
