Power producer prepays P3.75-billion debt

Business World Online

Posted on November 21, 2012 11:11:47 PM

LOPEZ-LED First Gen Corp. has fully prepaid a P3.75-billion, five-year loan secured in 2010, the company said in a disclosure yesterday.

The listed firm had obtained the loan from BDO Unibank, Inc.; BDO Leasing and Finance, Inc.; and BDO Private Bank, Inc.

It prepaid the loan using proceeds from the $420-million, 10-year term loan facility of subsidiary FGP Corp. which was drawn earlier this month, the company said.

In its previous disclosure in May 2010, the parent said that proceeds of the loan was used to “partially refinance the company’s outstanding indebtedness and for other general corporate requirements.”

Last week, First Gen said in a disclosure that it had also fully prepaid its $142-million term loan secured in 2010 from a group of foreign and commercial banks. Banks involved were BDO Unibank, Security Bank, Bank of the Philippine Islands, Maybank, Rizal Commercial Banking Corp., Union Bank of the Philippines, Mizuho Corporate Bank, Allied Bank Corp. and Robinsons Savings Bank.

Proceeds of that loan were used to “fund investments, finance capital requirements for various growth initiatives of the company, partially refinance outstanding indebtedness, and fund other general corporate purposes.”

For that prepayment, First Gen had also used proceeds from FGP Corp.’s 10-year loan facility.

FGP and affiliate First Gas Power Corp. own and operate the 500- megawatt (MW) San Lorenzo and the 1,000-MW Santa Rita natural gas-fired plants, both in Batangas City.

First Gen shares shed 25 centavos or 1.05% to P23.50 apiece yesterday. -- CAMCF   source