Tuesday, April 11, 2017

EDC gets P3.5-B loan for ‘debt refinancing’



Published April 6, 2017, 10:01 PM  By Myrna M. Velasco

Lopez-owned Energy Development Corporation (EDC) has secured P3.5 billion worth of loan from the Union Bank of the Philippines to refinance existing debts.
The company told the Philippine Stock Exchange (PSE) that the credit facility has a fixed 15-year amortization tenor, the proceeds of which “will be used to refinance existing loans of the company.”
Earlier, EDC likewise offered to purchase US$100 million notes – out of its $300 million outstanding notes that will be due in 2021. It will similarly be funneled to ease the company’s debt profile.
From that tender, the company indicated that it cornered $65.92 million at a purchase price of $1,100 per $1,000 of principal amount of the notes.
The Lopez firm further announced that “all noteholders who have validly submitted (and not withdrawn) tender instructions before the expiration date which specify an offer price or at the purchase price (or those who did not specify an offer price) will be accepted for settlement at the purchase price without any pro rata reduction on or around April 7, 2017 (the original settlement date).”
EDC added that any additional offers post-deadline at the prescribed offer price would still be accepted.
“Any notes in relation to such new tender instruction will be accepted for purchase at the purchase price, subject to pro-rate reduction in the event that new tender transactions are received in respect of an aggregate principal amount of notes which is greater than the maximum purchase price,” the listed firm has noted.
It added that by April 10, EDC expects “to announce the principal amount of any additional notes accepted for purchase after the expiration deadline and before the extended expiration deadline.”
EDC stressed that “settlement of notes validly submitted for tender after the expiration deadline and before the extended expiration deadline is expected to occur on or around 12 April, 2017.”

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