ABS-CBN to swap P2.74-B notes of cable TV unit

Media conglomerate ABS-CBN Broadcasting Corp. is offering cash and debt swap options to holders of P2.74 billion worth of notes issued by its cable TV subsidiary Central CATV Inc. in 2004.

In a disclosure to the Philippine Stock Exchange, ABS-CBN said the principal objective of the offer is to facilitate the restructuring of the debts of Central CATV; known by its trade name Sky Cable.

“With the invitation, holders are provided with options to exit as a creditor of Central CATV. A successful restructuring of the debt will allow Central CATV to focus on its business and capitalize on the market opportunity that exists in the Philippine pay-TV industry,” ABS-CBN said.

ABS-CBN has set aside P900 million for the purchase of Central CATV’s debt in cash.

Under the exchange offer option, holders can also swap their notes for ABS-CBN debt with a tenor of seven years and a fixed annual rate of two percent, payable quarterly in arrears.

ABS-CBN said at least P1.25 billion worth of notes should be exchanged for the offer to proceed. The offer runs until Aug. 30. ABS-CBN plans to increase its stake in Central CATV from 11 percent to a controlling share of over 50 percent possibly by the end of the third quarter this year.