MANILA, Philippines - Phoenix Petroleum Philippines on Friday disclosed its board has approved the issuance of P180 million warrants as part of the oil firm's plan to raise long-term capital, fund capital expenditures and refinance debt.
BDO Capital will be the recipient of the warrants, as it is also the sole arranger for the convertible debt. The warrant gives BDO the option to buy P180 million worth of stocks after three years at a price to be agreed upon by both parties.
The Phoenix board also approved the acquisition of Chelsea Shipping Corp., via a share swap.
"The acquisition of Chelsea Shipping will ensure control of product supply and is expected to result in savings from financial and operational efficiencies." Phoenix Petroleum told the stock exchange.
Chelsea Shipping has a total fleet size of 19,561 GRT, Chelsea is among the top 5 major petroleum tanker owners in the country, serving transportation, power, and bunkering industries.
At the same time, Phoenix Petroleum has gotten approval to hike the number of directors in its board to 11, from nine.