PLDT to raise up to P6-B via notes for debt refinancing
MANILA, Philippines - The country's largest telecommunications firm, Philippine Long Distance Telephone Co. (PLDT), said it will issue fixed rate corporate notes worth P5 billion to P6 billion to refinance existing debts.
PLDT Senior Vice President and Treasurer Anabelle Chua said they have tapped First Metro Investment Corp. and BPI Capital Corp. to arrange the issuance, which will take place this month.
“The P5-P6 billion will be in a form of fixed rate notes, the same as we’ve been doing. We did the P8.8 billion earlier so it’s the same nature,” she said.
In September, PLDT raised P8.8 billion via the offer of 7- and 10-year fixed rate notes that carried interest rates of 5.6038% and 5.6423%, respectively.
PLDT has been raising funds to refinance its debts in line with a liability management program to extend debt maturities and reduce financing costs.
The PLDT group's total debt stood at $3.1 billion as of September. This included the $500 million debt of unit Digital Telecommunications Philippines Inc. Sixty-four percent of PLDT's debt are due after 2015, it said.
PLDT is the first Philippine company to be rated "investment grade" by all 3 major international credit ratings agencies.
On Wednesday, November 7, PLDT reported its net income in January to September 2012 fell 6.27% to P28.7 billion, mainly due to intense industry competition that ate into its margins and one-time manpower expense.
However, PLDT maintained its profit guidance of P37 billion this year. For the fourth quarter, PLDT expects to post around P9 billion to P9.4 billion net income, up from P8.4 billion last year. - Rappler.com