By Marisa Wong
Madison, Wis., Jan. 29 - ABS-CBN Corp. announced it raised PHP 6 billion from an oversubscribed issue of 5.335% seven-year bonds.
The retail bonds were priced at 110 basis points over the benchmark PDST-F rate, according to a company press release.
As previously announced, the Philippines Securities and Exchange Commission authorized the company to issue up to PHP 10 billion of fixed-rate bonds in one or two tranches with tenors of seven and 10 years. The bonds were to be priced at 110 bps to 150 bps over the benchmark rate and to be issued in minimum denominations of PHP 10,000.
The company elected to issue a first tranche totaling PHP 5 billion with an over-allotment option.
BDO Capital and Investment Corp., BPI Capital Corp. and HSBC acted as joint lead managers for the transaction.
Because of strong demand from retail and institutional investors, the underwriters exercised the greenshoe for PHP 1 billion of additional bonds, the release said.
"The success of this bond issue is a major achievement for our company, and is a culmination of management's adoption and efficient execution of key business strategies over the last few years," Aldrin M. Cerrado, chief financial officer of ABS-CBN, commented in the release. "I am particularly pleased that we were able to price the issue at the lowest end of the indicative pricing range, and achieve broad distribution to retail investors."
Proceeds will be used to finance the company's capital expenditure program for the next few years, as noted before. Specifically, the company will invest in its production forward planning initiative, which includes the construction of sound stages, and will also use a portion of proceeds for the rollout of digital terrestrial TV and the expansion of its pay-TV business through Sky Cable.
This is the company's first domestic retail bond issuance, according to the release.
The offering began on Monday.
ABS-CBN is a media conglomerate based in Quezon City, Philippines.
| Issuer: | ABS-CBN Corp.
|
| Issue: | Fixed-rate retail bonds
|
| Amount: | PHP 6 billion
|
| Maturity: | Seven years
|
| Coupon: | 5.335%
|
| Underwriters: | BDO Capital and Investment Corp., BPI Capital Corp. and HSBC
|
| Announcement date: | Jan. 27
|
| Pricing date: | Jan. 28
|
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