PLDT gets approval for amended deal with bondholders

MANILA,Philippines — Telecommunications and digital services provider PLDT Inc. has secured the requisite number of consents from bondholders to amend trust indenture of retail bonds due 2021 and 2024, providing the company with greater flexibility to support higher levels of capital expenditures.

In a disclosure to the Philippine Stock Exchange yesterday PLDT announced the early closing of its consent solicitation exercise relating to its 5.225 percent seven-year fixed rate bonds due 2021 and 5.2813 percent 10-year fixed rate bonds due 2024.

The expiration date of the exercise has been adjusted to Oct. 30 from its original schedule of Nov. 15.

PLDT said it has received the required consents to amend the maximum stand-alone total debt to EBITDA ratio stipulated in the trust indenture from 3.0:1 to 4.0:1.

The proposed amendment to its maximum stand-alone total debt to EBITDA ratio stipulated in the trust indenture was being sought to provide PLDT with greater flexibility to support if necessary higher levels of capital expenditures and general corporate requirements given the pipeline of network expansion programs that the company would like to undertake.

“Moreover, it will align the covenant ratio of PLDT’s outstanding debt capital market issuances with that of the existing bilateral facilities of both PLDT and its wholly-owned subsidiary, Smart Communications Inc.,” it said earlier.

Pursuant to the consent solicitation statement released to the bondholders, the telco giant said a consent fee would only be paid to the consenting bondholders who have delivered valid and properly completed consent forms at or prior to the expiration date.

PLDT commenced with its consent solicitation exercise last Oct. 16, with BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. appointed as advisors.

PLDT has earmarked a record high P78.4 billion budget for capital expenditures this year, the bulk of which, or P48 billion, will be used for technology expansion initiatives, particularly with network and IT platforms.

In the first half, the company’s net income grew by four percent year-on-year to P12.2 billion, while telco core income, which excludes equity in losses from Voyager, accelerated depreciation, and gains from the sale of Rocket internet shares, was flat.

Consolidated service revenues also saw a six percent year-on- year jump to P76.7 billion, the highest half-year revenue level posted by the company since the second semester of 2014.