Globe Telecom Inc. is raising $600 million to finance its capital expenditures and maturing and existing debts.
In a disclosure to the Philippine Stock Exchange, Globe said it has priced a $600 million Reg S only non-call five-year US dollar-denominated senior perpetual capital securities offering, with an initial distribution rate of 4.20 percent, and payable semi-annually.
This offering represents Globe’s return to the international capital markets following its dual tranche US dollar-denominated senior notes issuance in 2020.
The final order book was oversubscribed by more than three times, allowing Globe to upsize the transaction to US$600 million and tighten final pricing by 30 basis points to 4.20 percent from the initial price guidance of 4.50 percent.
This transaction represents the tightest pricing for an equity-accounted senior step-up perpetual from the Philippines during the pandemic and the second tightest ever.
The transaction joins other Philippine equity issuers as the largest size raised in a single tranche under this structure.
“The issuance reaffirms the international investment community’s confidence in the company’s strong business fundamentals and mobile market leadership. The success of the offering supports our efforts to expand and enhance our core business and enable our efforts in building a robust digital ecosystem in the country,” said Ernest Cu, Globe president and chief executive officer.
HSBC and J.P. Morgan acted as joint global coordinators. They also acted as joint lead managers and joint bookrunners together with BPI Capital Corp., while China Bank Capital Corp. acted as domestic lead manager. – Myla Iglesias
