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Globe CFO says Bayan tender offer 98% complete

10 Dec 2012

Alberto de Larrazabal, the chief financial officer of Filipino operator Globe Telecom, says his firm is close to completing a tender offer to acquire the restructured debt of fellow telco Bayan Telecommunications Inc (Bayan) and its Radio Communications of the Philippines Inc (RCPI) subsidiary. According to the official, the initial indications are that a minimum 98.2% of the aggregate remaining principal of Bayan loans has been tendered, and 85.1% of RCPI loans. De Larrazabal added that despite an overall acceptance level of 94.1%, all tenders remained subject to validation by the company. ‘Globe is very pleased with the preliminary results of its tender offers for the restructured debt of Bayan and RCPI. Creditors of Bayan and RCPI have demonstrated overwhelming support for Globe’s tender offers,’ de Larrazabal said.

On 6 December TeleGeography’s CommsUpdate reported that Globe, the joint venture between Filipino conglomerate Ayala Corp and Singapore Telecommunications (SingTel), informed the Philippine Stock Exchange that it has amended its earlier cash offer to all the holders of Bayan’s remaining 13.5% senior debt notes due 2006, in a bid to sweeten the deal. Globe is looking to become the single major creditor of Bayan, which is under rehabilitation having seen its debts soar to levels of USD325 million in 2003. Bayan is paying off its debt under the plan, and the entry of the Ayala-backed group will see the latter assuming the creditors’ role in the rehab scheme going forward. It is understood that the sweetened deal involves settling each of the USD1,000 remaining principal notes for USD310 each – at the highest end of its previous offer range. Globe confirmed earlier that around 91.6% of the aggregate principal notes (i.e. approximately USD184.5 million worth) have been tendered and not withdrawn. Further, the telco has waived a previous condition that 70% of Bayan’s subsidiary Radio Communications Inc’s debt holders be included in the tender offer.

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