By Marisa Wong
Los Angeles, July 17 – Philippines’ Globe Telecom, Inc. announced it priced a $600 million dual-tranche offering of dollar-denominated senior notes.
Globe Telecom priced $300 million of 10-year notes with a coupon of 2˝% and $300 million of 15-year notes with a coupon of 3%, according to a 17-C filing with the Philippine Securities and Exchange Commission.
Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities plc and BPI Capital Corp. are the joint lead managers and joint bookrunners for the Regulation S deal.
The final order book was 6.5 times oversubscribed, allowing the company to tighten pricing from initial guidance by 40 basis points for the 10-year tranche and 35 bps for the 15-year tranche, according to a press release.
Proceeds from the unrated notes will be used to finance the company’s capital expenditures and its maturing or existing obligations and for general corporate purposes.
“The issuance is a testament of the investor community’s unwavering trust in the company’s strong business fundamentals. 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,” president and chief executive officer Ernest L. Cu commented in the release.
The telecommunications company is based in Taguig, Philippines.
| Issuer: | Globe Telecom, Inc.
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| Issue: | Senior notes
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| Amount: | $600 million
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| Bookrunners: | Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities plc and BPI Capital Corp.
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| Pricing date: | July 16
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| Distribution: | Regulation S
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| 10-year notes
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| Amount: | $300 million
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| Maturity: | 10 years
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| Coupon: | 2˝%
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|
|
| 15-year notes
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| Amount: | $300 million
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| Maturity: | 15 years
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| Coupon: | 3%
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