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that “all noteholders who have validly submitted (and not withdrawn) tender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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