Globe seeks changes in bond issue terms
Ayala-led Globe Telecom is seeking bondholders’ consent to amendments in bonds due 2019, 2020 and 2023.
The proposed changes are “intended to provide Globe increased operational flexibility in a competitive environment.”
” With the anticipated growth in data traffic and the need for sustained data-related investments, amending the consolidated debt-to-equity ratio from 2.5:1 to 3.0:1 is intended to provide the company with further flexibility to increase capital expenditures, sustain its revenue momentum and strengthen its market leadership,” Globe added.
The amendments are also intended to provide Globe with flexibility to manage capital assets in order to take advantage of opportunities arising from developments in the telecommunications industry and to respond to regulatory initiatives of the government.
“These initiatives may include the sharing of tower infrastructure in one or more forms and amending the negative covenants to permit the sale, transfer or other disposal of Globe’s assets for as long as such sale, transfer or disposal would not render Globe incapable of conducting its business, would provide Globe with further flexibility to address asset management requirements or opportunities,” the company said.
Globe has tapped BPI Capital Corp. as its advisor, while BDO Capital & Investment Corp. , China Bank Capital Corp., First Metro Investment Corp., The Hongkong and Shanghai Banking Corp. ING Bank N.V. Land Bank of the Philippines, RCBC Capital Corp., and SB Capital Investment Corp. shall act as associates for the consent solicitation.