The Securities and Exchange Commission approved the plan of semiconductor firm Cirtek Holdings Philippines Corp. to raise P2 billion from the issuance of commercial paper.
Cirtek said in a disclosure to the stock exchange it would issue and list the CP with Philippine Dealing & Exchange Corp. on February 20.
The company engaged the services of Multinational Investment Bancorporation as sole arrange and lead underwriter of the offering.
Cirtek may issue the CP in lump sum or in tranches and fix the interest rate prior to the issuance.
The succeeding tranches, if any, will be issued within three years from the date of effectivity of the subject amended registration statement filed with the SEC.
Cirtex plans to use the net proceeds from the offering to refinance debt and fund working capital requirements.
Cirtek plans to pay P1.33 billion worth of short term loans from China Banking Corp. and Security Bank Corp. It also plans to spend P400 million for Quintel USA’s working capital requirements and use P150 million as working capital of subsidiaries Cirtek Advanced Technologies and Solutions Inc. and Cirtek Electronics Corp.
Cirtek through its subsidiaries is mainly engaged in the manufacture and sale of semiconductor packages and value-added, highly integrated technology products.
Cirtek has obtained a credit rating of PRS A with a stable outlook from Philippine Rating Services Corp. (PhilRatings) for the P2-billion commercial paper.
A company rated PRS A has an above average capacity to meet its financial commitments relative to that of other Philippine corporates. A stable outlook indicates that the rating will likely be maintained or remain unchanged in the next 12 months.
The company, however, is more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates.