Cirtek raising P2 Billion from CP issuance

Cirtek Holdings Philippines Corp. (CHPC) is raising as much as P2 billion from the issuance of commercial papers.

Proceeds from the issue will be used to refinance the existing debt of the company and to finance working capital requirements.

The issue was assigned a rating of PRS A (corp.) by the Philippine Rating Services Corp. This means the issuer has an above average capacity to meet its financial commitments relative to that of other Philippine corporates.

The company, however, is somewhat more susceptible to adverse changes in circumstances and economic conditions than higher-rated corporates, PhilRatings said.

PhilRatings considered Cirtek Group’s established track record in the industry, strong customer base of well-established and global companies, highly competitive and cyclical industry that is susceptible to adverse changes in various economies, consistently increasing revenues and adequate liquidity in relation to debt servicing obligations. 

CHPC is a fully integrated global technology company focused on wireless communication. It is an independent complete solution provider for subcontract manufacturing of semiconductor devices and provides a broad range of assembly and testing services for various product applications and industries.

The company is primarily engaged in the design, development and delivery of the wireless industry’s antenna solutions, and the manufacture of valued-added, highly integrated technology product.

?It has been offering its products and services to several customers in the US (49 percent), Europe (33 percent) and Asia (18 percent) across different industries.

With its acquisition of Quintel in 2017, companies like AT&T Inc., Verizon Communications and Nokia Oyj have been added to the group’s current customer base.

Last year, Cirtek reported a net income of $8.3 million on the back of a 20 percent growth in revenues to $106.5 million. The expansion in consolidated revenues was attributed to the growth of the antenna systems businesses and the full year revenue contribution of Quintel.