The board of Phoenix Petroleum has approved the issuance of US$11.9 million in convertible notes.
The notes inlude warrants worth US$4.29 million.
The notes with warrants will be issued to BDO Universal Bank.
The US$4.29 million warrant gives BDO the option to buy US$4.29 million worth of stocks after three years at a price to be agreed upon by both parties.
In a disclosure to the Philippine Stock Exchange on Monday, Phoenix Petroleum said the issuance would be presented for approval to its stockholders in a special meeting in September.
Phoenix AVP for external affairs Raymond T. Zorrilla noted that the notes issuance would be undertaken following the signing of the agreement with BDO for the warrant issuance.
Zorilla said proceeds of the issue “will be used to finance the expansion of our retail network and the storagecapacities of our various terminals.”
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