- What are Preferred Shares/Stocks
A preferred share refers to a class of ownership that has a higher priority claim on the assets and earnings of a corporation than that of Common Shares.
- Dividends on Preferred Shares have to be paid first than dividends on Common Shares.
- Preferred Shares usually do not have voting rights.
- Classes of Preferred Shares: Redeemable, Convertible, and Perpetual
Perpetual Preferred Shares (Perps)
- Perps pay dividends indefinitely (declaration of dividends is at the sole option of the issuer).
- Unpaid Perps dividends are cumulative.
- Dividend rates are usually higher than Corporate Bonds.
- Similar to Corporate Bonds, Perps may have call provisions to allow for early prepayment at the option of the Issuer
- What is the minimum placement?
The minimum investment is 50 Preferred Shares, and in multiples of 10 Preferred Shares thereafter, or effectively, Php 50,000 and in increments of Php 10,000.
- How do I earn in Preferred Shares?
As a preferred shareholder, earnings are through Cash Dividends.
- Are the Cash Dividends taxable?
The taxation of dividends will be as follows:
- Individuals: 10%
- Corporation: 0%
- When will I receive my earnings (cash dividends) from the Preferred Shares?
Cash Dividends will be payable quarterly of each year, being the last day of each 3-month period following the relevant Listing date and if declared by the Board of Directors.
- What is Optional Redemption feature of the Preferred Shares?
Petron Corporation may redeem in whole (but not in part), any subseries of the Preferred Shares beginning on the respective Step-Up Dates, or on any Dividend Payment Date thereafter.
The Preferred Shares shall be redeemed at a redemption price, equal to the Offer Price of the Preferred Shares plus all dividends due to them on the actual date of redemption as well as all accumulated dividends due and payable after deduction of transfer costs customarily chargeable to stockholders, as applicable, to effect the redemption.
|
Series 3A Preferred Shares |
Series 3B Preferred Shares |
| Step Up Dates |
5.5th year anniversary from Listing Date, or on any Dividend Payment Date thereafter |
7th year anniversary from Listing Date, or on any Dividend Payment Date thereafter |
- What is the Step Up Dividend Rate?
Unless the Preferred Shares shall have been redeemed by Petron Corporation on the Optional Redemption Dates of each series, the initial dividend rate shall be adjusted as follows:
|
Series 3A Preferred Shares |
Series 3B Preferred Shares |
| Step Up Dividend Rate |
Higher of (1) Initial Dividend Rate, or (2) Average of 7-Year Benchmark Rate for 3 Business Days + 3.25% |
Higher of (1) Initial Dividend Rate, or (2) Average of 10-Year Benchmark Rate for 3 Business Days + 3.25% |
- How do I place reservation?
For Existing PNB Branch Clients
- Go to your PNB Branch of account
- Inquire about the Petron Perpetual Preferred Shares Series 3A and 3B
- Place your reservation
- Open/Update your PNB Securities trading account.
**Your Branch Officer may require you to accomplish and submit application forms
- PNB Branch shall inform the designated Trader regarding reservation of client.
- PNB Branch shall submit the complete and verified client’s application documents to PNB Capital.
For New PNB Branch Clients
- Go to your preferred PNB Branch
- Open a PNB account and inquire about the Petron Perpetual Preferred Shares Series 3A and 3B
- Place your reservation
- Open a PNB Securities trading account.
**Your Branch Officer may require you to accomplish and submit application forms
- PNB Branch shall inform the designated Trader regarding reservation of client.
- PNB Branch shall submit the complete and verified client’s application documents to PNB Capital.
For more information about the offer, you may refer to the Company’s prospectus at www.petron.com or go to www.edge.pse.com.ph.
