Globe Telecom Inc. has raised $600 million from the international debt market to refinance maturing debt and fund capital expenditures.
The Ayala-led telecommunications firm said the $300 million 10-year and $300 million 15-year REG S only dual tranche unrated US dollar-denominated senior notes had a coupon rate of 2.500 percent and 3.000 percent, respectively.
Globe returned to the international debt capital market after 16 years to take advantage of the favorable interest rate environment and diversify its lender base.
The company said it would use the net proceeds from the issue to finance its capex, refinance maturing and/or existing obligations and for general corporate requirements.
The final order book was oversubscribed by 6.5 times, allowing Globe to tighten by 40 basis points from the initial pricing guidance for the 10-year tranche and 35 basis points for the 15-year tranche.
The 10-year tranche represents the lowest ever yield for an unrated 10-year US dollar issuance globally and the tightest spread ever for any unrated corporate US dollar issuance in Southeast Asia.
