October 12, 2018 | 12:05 am
ABOITIZ POWER Corp. has received the
certificate of permit to sell securities on Thursday from the Securities and
Exchange Commission (SEC), it told the stock exchange, paving the way for the
sale of the second tranche of its P30-billion debt securities program.
The listed firm said the second
tranche bonds, which is equivalent to P10 billion and with an oversubscription
option of up to P5 billion, will be issued on Oct. 25.
The public offer will start on Oct.
12, and end on Oct. 18.
AboitizPower previously said it
would use the proceeds of the second tranche bonds to refinance the medium-term
loan of its wholly owned subsidiary Therma Power, Inc., to repay its short-term
loan obligations, and for general corporate purposes.
It has engaged BDO Capital Corp. as
the issue manager, BDO Capital Corp., BPI Capital Corp. and United Coconut
Planters Bank as joint lead underwriters, and BDO Unibank, Inc. Trust &
Investments Group as the trustee, and the Philippine Depository & Trust
Corp. as the registrar of the bonds.
AboitizPower intends to list the
bonds with the Philippine Dealing & Exchange Corp.
Philippine Ratings Services Corp.
(PhilRatings) previously rated the bonds as “PRS Aaa” with a stable outlook.
The credit rating is the highest quality with minimal credit risk, which
indicates the obligor’s extremely strong capacity to meet its financial
commitment on the obligation.
A stable outlook means the rating is
likely to be maintained or to remain unchanged in the next twelve months.
The rating and outlook were assigned
based on significant levels of cash flows and financial flexibility in relation
to debt service requirements; adequate capital structure supported by healthy
growth in retained earnings; diversified portfolio, with good growth prospects;
and experienced management team.
On Thursday, shares in AboitizPower
closed higher by 2.76% or P0.90 at P33.50 each. — Victor V. Saulon
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