San Miguel’s Savvy Move: Turning Market Panic into a 30% Debt Discount
📉 San Miguel's corporate bonds (ONs) initially plummeted about 30% due to market contagion fears following defaults by other companies.
💡 The company strategically bought back its own discounted bonds, effectively reducing its debt repayment burden by 30% on those repurchased ONs.
🛡️ Despite a high debt-to-EBITDA ratio (24x), San Miguel demonstrated financial astuteness and sustainability in a challenging environment, unlike other distressed companies.
San Miguel’s Bold Move: Debt Buyback Signals Confidence
👍 San Miguel, despite a complex financial history, recently announced a significant positive action: the buyback of its corporate bonds maturing shortly.
💰 This debt repurchase demonstrates the shareholder's commitment and financial capacity to meet obligations, aiming to reassure the market and avoid default.
📈 The move is seen as a confidence-boosting measure that could improve the perception of San Miguel's creditworthiness among investors.
