GMA gets P1.9-B syndicated loan

GMA Network Inc. has signed a P1.9-billion loan facility with a group of 13 major banks led by Chase Manhattan Asia Ltd. to bankroll its network expansion and acquisition of state-of-the-art digital equipment.

Signed yesterday was the secured term loan facility arranged by Chase Manhattan Asian, Chase Manhattan Manila, BDO Capital & Investments Corp. and Banco de Oro Universal Bank.

Despite the tight credit environment, GMA chairman and chief executive officer Felipe Gozon said banks responded "warmly" to the syndication, resulting to an oversubscription of 34 percent.

"This very substantial loan package is a vote of confidence on GMA by the country’s most respected financial institutions," Gozon said. "It is a manifestation of their faith in GMA’s ability to achieve accelerated growth in the coming years."

According to Gozon, GMA was migrating to digital broadcasting and the proceeds of the loan would help finance the program. The money will enable GMA to modernize its facilities nationwide and raise its production capability to world-class standards," Gozon said. "Our goal is to regain our number one position in the industry, not only in awards and credibility but also in ratings and revenues."

At present, Gozon said GMA has an extensive network of 48 very high-frequency (VHF) television stations nationwide and one ultra high-frequency (UHF) station in Metro Manila.

In addition, it operates 20 frequency-modulated (FM) radio stations and 11 amplitude-modulated (AM) radio stations nationwide through its radio company, Radio GMA.

According to Gozon, the expansion program would involve the completion of a network of additional UHF stations in key cities, a total of 54 VHF television stations and 60 radio stations nationwide.

Gozon said GMA has seven subsidiaries engaged in film production, post-production services, audio and video services, program syndication news media and marketing.

Other participants in the syndicated loan were DBS Bank Philippines, PCI Capital Corp. and Equitable PCI Bank and United Coconut Planters Bank.

The syndicate also included China Trust Commercial Bank Corp., Development Bank of the Philippines and Land Bank of the Philippines as arrangers. Asia United Bank and Keppel Bank Philippines were co-arrangers.

GMA is owned by the Jimenez and Gozon families.– Des Ferriols