This preferred shares offered by Petron Corporation is superior than other preferred shares like ACPR, ACPA, FPHP, SMCP1 and Pure Foods because of its relatively high dividend rate and step-up rate, in case of non-redemption. But the investors must be cautious because this high return might have high risk involved.
Below is the summary of PPREF prospectus;
Below is the summary of PPREF prospectus;
- Offer Price: Php100 per share with a par value of Php1.0 per share
- Dividend Rate: fixed rate of 9.5281% per annum. The declaration and payment of dividends on each Dividend Payment Date will be subject to the sole and absolute discretion of the Board of Directors to the extent permitted by law. If the Company‘s Board does not declare a dividend on the Shares for a dividend period, dividends on the Shares will be cumulative. Dividends on the Shares will be payable quarterly on March 5, June 5, September 5 and December 5 of each year.
- Dividend Rate Step-Up: In case of non-redemption of the Issuer, the Dividend Rate shall be adjusted on the Optional Redemption Date to the higher of (a) the current Dividend Rate or (b) the 10-year Fixed Rate Treasury Note benchmark yield as displayed on the PDST-F screen of the PDEx page (or such successor page) of Bloomberg (or such successor electronic service provider) at approximately 11:30 a.m. for the date corresponding to the Optional Redemption Date plus a spread of 487.5 basis points.
- Other Features: the Preferred shares are non convertible, non-participating and non-voting
- Listing: The shares were listed on the PSE on March 5, 2010.
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