The company is offering up to 12.5 million non-voting preferred shares at P2,000 each, comprising a firm offer of 7.5 million shares and an oversubscription option for another 5 million shares.
Dividend rates set
The shares will be issued in two series: Series A carrying an initial dividend rate of 6.1179 percent per annum, and Series B at 6.7631 percent to compensate investors for longer duration.
The base offer could raise P15 billion, while full exercise of the oversubscription option would lift total proceeds to P25 billion.
Globe plans to use about P14.88 billion of the proceeds to pay off its $600-million dollar bonds issued in November 2021.
Debt management, expansion
The company has the option to redeem these bonds on Aug. 2, 2026. If it chooses not to pay them off by then, the interest rate on the bonds will automatically rise starting Nov. 2, 2026, making them more expensive to keep.
The transaction represents the first tranche under Globe’s shelf registration of 20 million preferred shares for listing on the local bourse.
The offer period runs from Feb. 13 to Feb. 20, with tentative listing on March 2. The deal is led by BPI Capital, BDO Capital, and China Bank Capital alongside First Metro Investment Corp. and Security Bank Capital.
—Edited by Miguel R. Camus
