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Thursday, March 28, 2024

EDC bares tender offer to buy back dollar debt

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Energy Development Corp. announced Monday a tender offer to note holders of $300-million bonds due 2021 to manage currency risk.

EDC said in a disclosure to the stock exchange it issued an invitation to holders of $300-million 6.50 percent notes due 2021 to tender notes up to $100 million.

EDC said it would purchase the notes for cash. The notes are listed on the Singapore Exchange Securities Trading Ltd.

“The purpose of the offer is to better manage currency risk and better optimize EDC’s debt maturity profile,” the company said.

“In addition, the offer provides an opportunity to noteholders to gain liquidity with respect to the notes [by tendering their notes for purchase by EDC] that might not otherwise be available to such noteholders. Any notes acquired by EDC pursuant to the offer will be cancelled and will not be re-issued or re-sold,” it said.

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EDC said it would announce whether to accept valid tenders of notes pursuant to the offer and the final aggregate nominal amount of notes by April 5, 2017. It said the announcement would also specify the expected settlement date.

“The acceptance for purchase by EDC of the notes validly tendered under the tender offer is, among other things, conditional on the meeting of certain financing conditions by EDC, further details of which are described in the tender offer memorandum dated March 27,” EDC said.

The offer shall commence on March 207 and end on April 4, 2017, subject to adjustment by and at the sole discretion of EDC.

EDC said it approved a capital expenditure of  P7.7 billion for 2017, slightly lower than the actual capex of P8.3 billion in 2016.

The company posted a net income of P9.72 billon last year, up 23.7 percent from P7.86 billion in 2015.

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