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Philippines’ Globe Telecom cuts short bid to amend four note series
By Susanna Moon
Chicago, Aug. 22 – Globe Telecom, Inc. said it concluded its consent solicitation to amend its notes due 2017, 2019, 2020 and 2023 at 5 p.m. ET last Friday, about two weeks ahead of the scheduled expiration.
No other details were released in the company update on Monday.
As announced Aug. 3, was company was soliciting consents to amend the notes to ease the debt ratio and to align some terms with current reporting standards.
The company was seeking consents for its five-year and three-month 5¾% notes due Sept. 1, 2017, 6% seven-year notes due June 1, 2019, 4.8875% seven-year notes due July 17, 2020 and 5.2792% 10-year notes due July 17, 2023.
The proposed amendment would allow the company more “flexibility and capacity to secure funding for its capital expenditure requirements and other business plans and programs,” according to a previous company announcement.
Specifically, Globe asked holders to allow the company to maintain a higher consolidated debt-to-equity ratio of 2.5 times and to align its debt and equity definitions with the country’s financial reporting standards.
The proposed amendments are for the trust indentures dated May 18, 2012 and July 5, 2013 with a record date of 5 a.m. ET on July 29.
For more information, go to globe.com.ph.
Globe said it will pay consenting bondholders PHP 1.25 per PHP 1,000 principal amount.
To amend the notes, the company needed to secure consents from bondholders representing more than 50% of the outstanding bonds.
BPI Capital Corp. is the adviser.
The consent solicitation had been set to run from Aug. 8 until 5 a.m. ET on Sept. 5.
Globe is a telecommunications company based in Mandaluyong City, Philippines.
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