Philippines' Globe Telecom calls $151 million of notes

By Reshmi Basu

New York, May 6 - Globe Telecom said it would redeem $151 million worth of bonds due 2009 in August, receiving approval from its boards of directors to exercise its call option.

The amount represents the remaining balance of the company's $220 million 13% bonds due 2009. The country's second largest wireless operator has previously redeemed $69 million of its 10-year 13% bonds.

"Globe's decision to exercise its option to redeem these bonds in August 2004 is part of Globe's liability management strategy to refinance more expensive debt," the company said in a news release.

The company also stated that the strategy would reduce interest expense.

Globe has raised a $50 million five-year term loan and a three billion peso retail issue to fund in part in the early redemption of the bonds, originally issued in August 1999.

Globe Telecom Inc. is jointly owned by Ayala Corp. and Singapore Telecommunication.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.