PLDT seeks bondholder consent for fixed-rate offers

It will align the covenant ratio of PLDT’s outstanding debt capital market issuances with that of the existing bilateral facilities of both PLDT and its wholly-owned subsidiary, Smart Communications Inc.

Fixing the correct wire is easy for this telephone lineman. A subscriber has complained of a noisy line. yummie Dingding

PLDT Inc. is undertaking a consent solicitation exercise to amend its stand-alone debt-to-earnings before interest, tax, depreciation, and amortization (ebitda) ratio for two of its bond issuances.

The company said it is seeking to amend the stand-alone total debt to ebitda ratio to 4.0:1 from the 3.0:1 at present for its 5.2250-percent seven-year fixed rate bond due 2021 and the 5.2813 percent 10-year bond due 2024.

“The proposed amendment seeks to provide the issuer with greater flexibility to support, if necessary, higher levels of capital expenditures and general corporate requirements given the pipeline of network expansion programs that PLDT would like to undertake and in order to serve the increasing data requirements of its customers so as to strengthen PLDT’s market position,” the firm said.

“Moreover, it will align the covenant ratio of PLDT’s outstanding debt capital market issuances with that of the existing bilateral facilities of both PLDT and its wholly-owned subsidiary, Smart Communications Inc.,” it added.

The consent solicitation exercise shall commence on 16 October until 15 November, unless such expiration date is adjusted to an earlier or later date at the discretion of the issuer. Bondholders are set to receive P1 consent fee for every P1,000 of the principal amount of the bonds.

PLDT said it appointed BDO Capital & Investment Corporation, BPI Capital Corporation and First Metro Investment Corporation as Advisors for the consent solicitation exercise.