SyCipLaw advises Issuer and Noteholders in Eagle Cement’s Php4.5 billion secured fixed rate notes facility

May 24, 2013

SyCipLaw teams acted as counsels to Eagle Cement as issuer and Standard Chartered Bank, China Banking Corporation, Development Bank of the Philippines, PNB Capital and Investment Corporation, Union Bank of the Philippines, Metropolitan Bank and Trust Company, Security Bank Corporation, and United Coconut Planters Bank as noteholders in Eagle Cement’s Php4.5 billion secured fixed rate notes facility.

Eagle Cement is a 100% Filipino company engaged in the manufacture and distribution of cement. Its production facility is one of the most modern in the country with a capacity of 1.5 million metric tons of cement per year (approximately 40 million bags of cement).

The Php4.5 Billion Secured Fixed Rate Notes Facility is Eagle Cement’s first corporate notes issuance. The proceeds from this corporate notes facility was intended to be used by Eagle Cement to fully pay an existing loan facility. The securities used to secure the payment and other obligations under the notes facility were substantially the same as the securities used to secure the payment of the existing loan facility. Given that the securities would only be released at the time of full payment, the timing and procedure for the release of securities from the loan facility and the delivery of the same to the new security agent to secure the corporate notes facility was crucial to the transaction.

The SyCipLaw team acting for the noteholders was composed of partner Mia G. Gentugaya and associate Diana Grace L. Uy. The SyCipLaw team acting for Eagle Cement was composed of partner Vicente D. Gerochi IV and senior associate Jose Florante M. Pamfilo.