For the first time in 16 years, Globe Telecom, Inc. has gone back to the international debt market to issue US$600-mMillion notes, taking advantage of favorable interest rates as it funds its capital expenditure and refinances its obligations.
The telco the other day successfully priced its US$300 million 10-year notes with a coupon rate of 2.500% and US$300 million 15-year notes, with 3.000%.
Globe applied to list the Reg S only dual tranche unrated US dollar-denominated senior notes at Singapore Exchange Securities Trading Limited.
The final order book was oversubscribed by 6.5 times, allowing Globe to tighten from the initial pricing guidance by 40 basis points 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 USD issuance globally and the tightest spread ever for any unrated corporate USD issuance in Southeast Asia.
On the other hand, the 15-year tranche represents the longest ever tenor for an unrated corporate USD issuance globally.
“The issuance is a testament of the investor community’s unwavering trust in the company’s strong business fundamentals,” according to Globe President and Chief Executive Officer (CEO) Ernest L. Cu.
“The success of the offering, after having last tapped the international capital markets in 2004 and achieving a record-low coupon for the 10-year tranche and the record-long tenor for unrated bonds for the 15-year tranche, enables us to maintain our momentum, enhance our network and deliver on our commitment of providing first-world internet connectivity to the Philippines,” he elaborated.
“We are extremely delighted with the outcome of our re-entry in accessing the debt capital markets, especially with the speed and execution of the deal team making it one of the fastest unrated bond deals for a corporate,” says Globe Chief Finance Officer (CFO) Rizza Maniego-Eala.
“The success of the transaction underscores global investors’ confidence in Globe’s strong long-term outlook,” she went on.
“This issuance was an important milestone in our continuous engagement with investors and expanding our debt capital structure.”
HSBC and J.P. Morgan acted as Joint Global Coordinators for the offering.
HSBC, J.P. Morgan, and BPI Capital Corporation acted as Joint Lead Managers and Joint Bookrunners.
However, the Notes being offered or sold have not been registered and will not be registered with the Philippine Securities and Exchange Commission under the Philippine Securities Regulation Code. Any future offer or sale of the Notes is subject to the registration requirement under the Code unless such offer or sale qualifies as an exempt transaction.
Credit belongs to : www.mb.com.ph