Metro Pacific secures P8-b loan to retire debt

Conglomerate Metro Pacific Investments Corp. has obtained P8 billion worth of term loan facility to partially finance a debt redemption plan.

Metro Pacific said in a disclosure to the stock exchange the P8-billion loan had a tenor of 10 and 15 years.

Metro Pacific plans to use the loan proceeds to partially finance “the redemption of the outstanding debt obligations of Beacon Electric Asset Holdings Inc., a wholly-owned subsidiary of MPIC and for other general corporate purposes.”

The conglomerate hired BDO Capital & Investment Corp. as arranger and bookrunner.

The conglomerate has been tapping the debt market and indicated it has no plans to raise capital through the equities market to finance its programmed capital expenditures over the next five years.

Metro Pacific in December secured a 10-year fixed-rate term loan worth P5 billion from BDO Unibank Inc and a similar amount and tenor from Union Bank of the Philippines to finance its investments in several projects.

Metro Pacific plans to spend P100 billion in capital expenditure this year, or nearly double the P56-billon programmed spending in 2017.

Metro Pacific will allot the bulk or P38 billion of the 2018 capital spending to the tollroad business, P21 billion for Manila Electric Co., P17 billion for Light Rail Manila Corp., and P6 billion each for Maynilad Water Services Inc. and logistics and hospital units.

The conglomerate also plans to file with the Securities and Exchange Commission a P30-billion bond shelf registration with an initial tranche of P10 billion, its maiden issue.

Metro Pacific plans to reduce its stake in Maynilad and conduct an initial public offering for the hospital group.

Topics: Metro Pacific secures P8-b loan to retire debt
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