By Marisa Wong
Los Angeles, Oct. 27 – Philippines’ Globe Telecom, Inc. priced $600 million of perpetual non-call five-year senior capital securities on Tuesday, according to a press release.
The securities have an initial distribution rate of 4.2%.
The final order book was oversubscribed by more than three times, and as a result Globe upsized the deal to $600 million and tightened final pricing by 30 basis points to 4.2% from initial price guidance of 4˝%.
This transaction represents the tightest pricing for an equity-accounted senior step-up perpetual from the Philippines during the pandemic and the second tightest ever, the company said. The transaction joins other Philippine equity issuers as the largest size raised in a single tranche under this structure.
This offering represents Globe’s return to the international capital markets following its dual-tranche dollar-denominated senior notes issuance in 2020, according to the release.
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 only sale, with HSBC and JPMorgan as joint global coordinators.
Proceeds are expected to be used to finance the company’s capital expenditures and its maturing or existing obligations and for general corporate purposes.
The telecommunications company is based in Taguig, Philippines.
| Issuer: | Globe Telecom, Inc.
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| Issue: | Senior capital securities
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| Amount: | $600 million
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| Maturity: | Perpetual
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| Bookrunners: | Hongkong and Shanghai Banking Corp. Ltd., J.P. Morgan Securities plc and BPI Capital Corp.
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| Domestic lead manager: | China Bank Capital Corp.
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| Coupon: | 4.2%
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| Call: | Non-callable for five years
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| Pricing date: | Oct. 26
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| Distribution: | Regulation S
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| Initial price guidance: | 4˝%
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