By Susanna Moon
Chicago, July 13 - Philippine Long Distance Telephone Co. and its wholly owned subsidiary Smart Communications, Inc. have each executed a PHP 2.5 billion five-year notes facility agreement on Tuesday with a group of institutional lenders.
The notes have a yield of 6.8615%, based on a credit spread of 30 basis points over the five-year benchmark rate, according to a company press release.
Proceeds will be used to finance capital expenditures and refinance debt.
First Metro Investment Corp. is arranger and bookrunner for both deals.
Despite demand of PHP 12 billion, the issuers kept the size at PHP 2.5 billion each. The lenders were a mix of universal, savings, trust and investment banks, and an insurance company, the release said.
"The high credit quality of these companies and the precise timing of the issuances enabled the notes to be priced at the lowest end of the range," Roberto Juanchito T. Dispo, executive vice-president of First Metro, said in the release.
"The proceeds of the financing will enable the PLDT Group to pursue capital investments in conjunction with its technology roadmap as we continue to ensure that our subscribers have access to the latest and most cost-effective services," PLDT treasurer and Smart chief financial officer Anabelle L. Chua said in the release.
Philippine Long Distance Telephone is a diversified telecommunications company based in Makati City, the Philippines.
| Issuer: | Philippine Long Distance Telephone Co.
|
| Issue: | Notes
|
| Amount: | PHP 2.5 billion
|
| Maturity: | Five years
|
| Yield: | 6.8615%
|
| Spread: | 30 bps over five-year benchmark
|
| Bookrunner: | First Metro Investment Corp.
|
| Announcement date: | July 12
|
|
|
| Issuer: | Smart Communications, Inc.
|
| Issue: | Notes
|
| Amount: | PHP 2.5 billion
|
| Maturity: | Five years
|
| Yield: | 6.8615%
|
| Spread: | 30 bps over five-year benchmark
|
| Bookrunner: | First Metro Investment Corp.
|
| Announcement date: | July 12
|
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