Friday, October 12, 2018

AboitizPower gets SEC go signal to issue 2nd tranche of bonds


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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