Globe Telecom Prices USD 600 Million 10-Year and 15-Year Reg S Only Dual Tranche USD Denominated Senior Unsecured Fixed Rate Notes
July 16, 2020 at 07:26 pm EDT
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Globe Telecom, Inc. successfully priced a USD 300 million 10-year and USD 300 million 15-year Reg S only dual tranche unrated US dollar-denominated senior notes (the "Notes") with a coupon rate of 2.500% and 3.000%, respectively. This offering represents the first time Globe is tapping the international debt capital markets since 2004 allowing the Company to take advantage of the favorable interest rate environment and diversify its lender base. The Notes are unrated and have been applied for listing on the Singapore Exchange Securities Trading Limited. In Globe's mandate announcement dated 15 July 2020, the Company indicated that the net proceeds from the issue of the Notes will be used to finance Globe's capital expenditures, refinance maturing and/or existing obligations, and for general corporate requirements. The final order book was oversubscribed by 6.5 times, allowing Globe to tighten from the initial pricing guidance by 40 basis points for the 10-year tranche and 35 basis points for the 15-year tranche. The 10-year tranche represents the lowest ever yield for an unrated 10-year USD issuance globally and the tightest spread ever for any unrated corporate USD issuance in Southeast Asia. On the other hand, the 15-year tranche represents the longest ever tenor for an unrated corporate USD issuance globally,
according to Dealogic. HSBC and J.P. Morgan acted as Joint Global Coordinators, and HSBC, J.P. Morgan, and BPI Capital Corporation acted as Joint Lead Managers and Joint Bookrunners.
Globe Telecom, Inc. is a Philippines digital platform company with interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare. The Companyâs segments include Mobile Communications Services and Wireline Communications Services. The Mobile Communications Services segment provides digital cellular telecommunications services, which includes mobile voice, mobile SMS, and mobile data. The Company offers its mobile communications services to consumers, corporate and small and medium enterprise (SME) clients through a range of brands, including globe postpaid, globe prepaid and touch mobile. The Wireline Communications Services segment provides fixed line voice, corporate data, and home broad band services. It offers a range of fixed line communications services, wired and wireless Broadband access, and end-to-end connectivity solutions customized for consumers, SME, and businesses.