Globe chooses bond underwriters

ABS-CBN News

Posted at Feb 10 2009 12:48 PM | Updated as of Feb 11 2009 02:18 AM

Mobile phone operator Globe Telecom Inc. has tapped BPI Capital Corp., BDO Capital Corp. and First Metro Investment Corp. as lead underwriters for its P3-billion corporate bond issue.

In a disclosure, Globe said it signed an underwriting agreement with the three investment banks. It said it also engaged RCBC Capital Corp. and Viscal Investment Inc. as co-lead underwriter and participating underwriter, respectively.

Globe's bond offer would run from February 12 until 19, with proceeds to be used for the company's capital expenditures.

Globe is issuing three- and five-year bonds with interest rates of 7.5 percent and 8 percent. A minimum investment of P50,000 was set.

Earlier, the company reported a net income of P11.28 billion for 2008, down 15 percent year-on-year, as low demand hit its revenues.

This year, Globe is cutting its capital spending to $350-$400 million from about $420 million in last year.

It said the spending budget in 2009 would fund investments in broadband for residential consumers, network enhancements and maintenance of its core 2G business.

The company ended 2008 with 234,000 broadband subscribers and 24.7 million cellular network users.