Financial groups gobble up PLDT bond float
May 19, 2002 | 12:00am
Four of the worlds biggest and most influential financial institutions have gobbled up the entire $350-million total bond issuance of Philippine Long Distance Telephone Co. (PLDT) last April, the company informed the Philippine Stock Exchange.
PLDT offered a total of $350 million in two separate bond issues consisting of $250 million 10-year fixed rate notes due 2012 and $100 million five-year FRN due 2007 as part of the companys ongoing initiatives to address its heavy debt load.
The five-year FRNs carry an interest rate of 11.375 percent while yield on the 10-year notes was pegged at 10.625 percent.
Credit Suisse First Boston (Europe) Ltd. and Morgan Stanley & Co. International Ltd. purchased equal amounts of $47 million in five-year FRNs and $117.5 million 10-year FRNs; the Anglo-Dutch giant ABN Amro Bank N.V. subscribed to $4.89 million and $12.22 million in five-year FRNs and 10-year FRNs, respectively while the balance was accounted for by ING Bank N.V.
Except for ING Bank, which holds 161, 604 of PLDTs series VI convertible preferred shares, the three other financial giants do not own any form of PLDTs stocks.
In a related development, PLDT said it has completed its tender offer for its outstanding 8.5-percent notes due 2003 and 10.625-percent notes due 2004 and was expected to complete payment last Friday, May 17.
Based on final information, $62.97 million in principal amount of the 8.5-percent notes and $116.943 million of the 10.625-percent notes were validly tendered and not withdrawn in the tender offer, wherein PLDT accepted to purchase all of the notes, even offering an early repurchase payment of $15 per $1,000 in the principal amount of the notes accepted for purchase.
CSFB and Morgan Stanley also acted as dealer managers in the tender offer and consent solicitation.
The successful execution of these important components of PLDTs liability management programs immediately improved PLDTs debt maturity profile, prompting two credit rating agencies, Standard and Poors and Moodys, to upgrade their ratings in PLDT from S&Ps "BB-" to "BB" and Moodys change its outlook from "negative" to "stable."
PLDT offered a total of $350 million in two separate bond issues consisting of $250 million 10-year fixed rate notes due 2012 and $100 million five-year FRN due 2007 as part of the companys ongoing initiatives to address its heavy debt load.
The five-year FRNs carry an interest rate of 11.375 percent while yield on the 10-year notes was pegged at 10.625 percent.
Credit Suisse First Boston (Europe) Ltd. and Morgan Stanley & Co. International Ltd. purchased equal amounts of $47 million in five-year FRNs and $117.5 million 10-year FRNs; the Anglo-Dutch giant ABN Amro Bank N.V. subscribed to $4.89 million and $12.22 million in five-year FRNs and 10-year FRNs, respectively while the balance was accounted for by ING Bank N.V.
Except for ING Bank, which holds 161, 604 of PLDTs series VI convertible preferred shares, the three other financial giants do not own any form of PLDTs stocks.
In a related development, PLDT said it has completed its tender offer for its outstanding 8.5-percent notes due 2003 and 10.625-percent notes due 2004 and was expected to complete payment last Friday, May 17.
Based on final information, $62.97 million in principal amount of the 8.5-percent notes and $116.943 million of the 10.625-percent notes were validly tendered and not withdrawn in the tender offer, wherein PLDT accepted to purchase all of the notes, even offering an early repurchase payment of $15 per $1,000 in the principal amount of the notes accepted for purchase.
CSFB and Morgan Stanley also acted as dealer managers in the tender offer and consent solicitation.
The successful execution of these important components of PLDTs liability management programs immediately improved PLDTs debt maturity profile, prompting two credit rating agencies, Standard and Poors and Moodys, to upgrade their ratings in PLDT from S&Ps "BB-" to "BB" and Moodys change its outlook from "negative" to "stable."
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