Megawide Construction Corp. said Tuesday stockholders approved a plan to raise fresh capital through the issuance of preferred shares.
Megawide said in a disclosure to the stock exchange shareholders approved during their recent meeting the increase in authorized capital stock by 26 million preferred shares to 150 million in cumulative, non-voting, non-participating, non-convertible and perpetual preferred shares.
It said the initiative is part of its financial management program to provide flexibility in the capital base, spread maturity towers in the medium-term and beef up balance sheet over the long-term.
The company announced in March plans to raise up to P4 billion from issuance of up to 40 million in preferred shares at a price of P100 apiece. Net proceeds from the preferred shares offering will be used primarily to refinance outstanding obligations and for general corporate purposes.
The planned capital raising activity is expected to be completed by the third quarter this year.
Megawide’s subsidiary GMR Megawide Cebu Airport Corp., the operator of Mactan-Cebu International Airport, also executed a debt rebalancing program which was unanimously approved by a group of seven lenders to free-up about P4.5 billion in cash, including the temporary relaxation of debt covenants and servicing ratios, during the airport’s recovery period from 2021 to 2023.
“The success of our undertakings last year reflects the strong support and confidence of our financial partners and lenders in our long-term game plan and growth prospects, which we constantly communicate with them,” Megawide chairman and chief executive Edgar Saavedra said.
“A number of them have even expressed keen interest in collaborating with us for our pipeline, while continuing to be our partners in our existing projects. We will always be driven to grow and engineer a first-world Philippines as long as we enjoy the trust of our partners, shareholders, and all stakeholders,” he said.