San Miguel Brewery Bares Consent Solicitation Results

Mandaluyong–(PHStocks)–San Miguel Brewery Inc. (PSE: SMB), the brewery unit of San Miguel Corporation, confirmed that the trustee to its PhP38.8 billion bonds (Bonds), Bank of the Philippine Islands-Asset Management and Trust Group (Trustee), has certified that record bondholders representing or accounting for 76.92% of the aggregate principal amount of the Bonds have consented to the replacement of the minimum Current Ratio (Current Assets/Current Liabilities) of 1:1 in the terms and conditions of the Bonds, with a minimum Interest Coverage Ratio (EBITDA/Interest Expense) of 4.75:1.

With bondholders approving the replacement, SMB and the Trustee executed today the Supplemental Agreement amending the Trust Agreement for the Bonds.

The consent fees will be paid to the consenting bondholders within three (3) business days from the execution of the Supplemental  Agreement and such agreement will take effect upon payment of said fees in accordance with the Consent Solicitation Statement issued by SMB in December 2011.

SMB believes that the minimum Interest Coverage Ratio is a more appropriate measure in monitoring the financial health of the Company as it gives an indication of whether SMB has sufficient margin in operating profit to cover increases in the cost of debt.

It is believed to be a stronger measure of protecting the interest of lenders, as it provides an early sign of the Company’s ability to manage liabilities.

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