In a disclosure to the Philippine Stock Exchange, PLDT said it has launched a cash tender offer for its 10.625 percent bonds due 2007 that are valued at $71.986 million. The deal is being managed by Credit Suisse First Boston.
The telecommunications giant has offered $1,097.50 for a nominal value of $1,000 of its 2007 notes to bondholders who will tender the notes by Oct. 27.
For bondholders who tender the notes between Oct. 27 and Nov. 4, the price will be reduced to $1,092.50 for each $1,000 nominal value.
It has also sought the consent of bondholders to make amendments to 11.375 percent notes due 2012. It is offering an early consent fee of 50 cents, or $5 per each $1,000 nominal value, to its bondholders. The incentive offer expires on Oct. 27.
According to the PLDT statement, the consent "would give PLDT greater flexibility to make certain restricted payments, including payment of dividends to holders of PLDT’s common stock, and would reduce PLDT’s permitted leverage ratio pursuant to the terms of the notes.
PLDT has significantly de-leveraged since the issuance of the 2012 notes and the 2007 notes, utilizing its cash flow from operations supplemented by dividends from its subsidiary Smart Communications, Inc.
As a result of PLDT’s improved cash flows and reduced debt levels, PLDT restored the payment of common dividends in May 2005 after suspending common dividend payments in April 2001 and intends to gradually increase its dividend payout in succeeding years.