Globe completes tender offer for Bayan notes

ABS-CBN News

Posted at Dec 20 2012 12:50 PM | Updated as of Dec 21 2012 01:05 AM

MANILA, Philippines - Ayala-led Globe Telecom, Inc. has successfully completed its tender offer for Bayan Telecommunications, Inc.'s debt papers.

In a disclosure on Thursday, Globe Telecom said about 92.90% of Bayan's notes was tendered and not withdrawn.

Settlement of the tender offer has been slated for Dec. 21 (New York City time).

The offer was launched by Globe Telecom last month, as it also announced it is eyeing an equity interest in Bayan.

The Ayala telco also earlier said that once the debt offer has been completed and settled, it plans to amend the Bayan's rehabilitation plan and move towards drafting a long-term and sustainable path for the Lopez-led company.

Bayan has been in rehabilitation since 2003 and is expected to remain so until 2023.

Creditors of Bayan, whose debt reportedly reached $325 million before it was placed under rehabilitation, include Development Bank of the Philippines, the United Coconut Planters Bank, and the Land Bank of the Philippines.

Bondholders, meanwhile, include Avenue Asia Investments LP, Avenue Asia International, Ltd., Avenue Asia Special Situations Fund II LP, Avenue Asia Capital Partners LP, and Van Eck Global Opportunity Masterfund Ltd.

Bayan has a fixed-line and data business segments, offered to clients located in Metro Manila and select provinces.

The firm also has a 92% control of the National Digital Transmission Network, which consists of submarine and land cables, and microwave radio worth about $70 million.


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