Globe Telecom Inc. tapped the international debt market to raise $600 million to fund capital expenditures and debt refinancing.
The telecom arm of Ayala Corp. said it successfully priced the $600-million Reg S only non-call five-year US dollar-denominated senior perpetual capital securities offering, with an initial distribution rate of 4.20 percent and payable semi-annually.
Globe said the securities would be accounted for by the company as an equity Instrument. The offering represents Globe’s return to the international capital markets following its dual tranche US dollar-denominated senior notes issuance in 2020. The securities are unrated and were received by the Singapore Exchange Securities Trading Limited for listing and quotation.
Globe said it would use the net proceeds from the proposed issue of the securities to finance capital expenditures, maturing and/or existing obligations and for general corporate requirements.
The final order book was oversubscribed by more than three times, allowing Globe to upsize the transaction to $600 million and tighten final pricing by 30 basis points to 4.20 percent from the initial price guidance of 4.50 percent.
“The issuance reaffirms the international investment community’s confidence in the company’s strong business fundamentals and mobile market leadership,” said Globe president and chief executive Ernest Cu.
Cu said the success of the offering would support the company’s efforts to expand and enhance its core business and enable Globe’s efforts in building a robust digital ecosystem in the country.
“We are extremely delighted with the outcome of the Securities offering. The outstanding success of the transaction underscores global investors’ belief in Globe’s strength as a business,” said Globe chief finance officer Rizza Maniego-Eala.
“This offering was an important milestone in our continuous engagement with our investors and achieves our objective to strengthen Globe’s position in the capital market,” she said.
HSBC and J.P. Morgan acted as joint global coordinators while HSBC, J.P. Morgan and BPI Capital Corp. served as joint lead managers and joint bookrunners. China Bank Capital Corp. was tapped as the domestic lead manager.