Globe Telecom said it is soliciting consent from holders of its fixed-rate bonds due 2019, 2020 and 2023 to make certain amendments to the terms and conditions of the bonds.
The consent solicitation exercise includes the company’s seven-year 6-percent fixed-rate bods due 2019; seven-year 4.8875-percent fixed-rate bonds due 2020; and 10-year 5.2792-percent fixed=rate bonds due 2023.
The transaction will commence on Sept. 24 and will expire on Oct. 19. Globe appointed BPI Capital Corp. as its advisor, while BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., The Hongkong and Shanghai Banking Corp. Limited, ING Bank N.V. Manila Branch, Land Bank of the Philippines, RCBC Capital Corp. and SB Capital Investment Corp. as associates for the consent solicitation.
“The proposed amendments are intended to provide Globe increased operational flexibility in a competitive environment. With the anticipated growth in data traffic and the need for sustained data-related investments, amending the consolidated debt-to-equity ratio from 2.5:1 to 3.0:1 is intended to provide the company with further flexibility to increase capital expenditures, sustain its revenue momentum and strengthen its market leadership,” Globe said.