AboitizPower gets SEC go sig­nal to is­sue 2nd tranche of bonds

Business World - - Corporate News - Vic­tor V. Saulon

ABOITIZ POWER Corp. has re­ceived the cer­tifi­cate of per­mit to sell se­cu­ri­ties on Thurs­day from the Se­cu­ri­ties and Ex­change Com­mis­sion (SEC), it told the stock ex­change, paving the way for the sale of the se­cond tranche of its P30-bil­lion debt se­cu­ri­ties pro­gram.

The listed firm said the se­cond tranche bonds, which is equiv­a­lent to P10 bil­lion and with an over­sub­scrip­tion op­tion of up to P5 bil­lion, will be is­sued on Oct. 25.

The pub­lic of­fer will start on Oct. 12, and end on Oct. 18.

AboitizPower pre­vi­ously said it would use the pro­ceeds of the se­cond tranche bonds to re­fi­nance the medium-term loan of its wholly owned sub­sidiary Therma Power, Inc., to re­pay its short-term loan obli­ga­tions, and for gen­eral cor­po­rate pur­poses.

It has en­gaged BDO Cap­i­tal Corp. as the is­sue man­ager, BDO Cap­i­tal Corp., BPI Cap­i­tal Corp. and United Co­conut Planters Bank as joint lead un­der­writ­ers, and BDO Uni­bank, Inc. Trust & In­vest­ments Group as the trustee, and the Philip­pine De­pos­i­tory & Trust Corp. as the reg­is­trar of the bonds.

AboitizPower in­tends to list the bonds with the Philip­pine Deal­ing & Ex­change Corp.

Philip­pine Rat­ings Ser­vices Corp. (PhilRat­ings) pre­vi­ously rated the bonds as “PRS Aaa” with a sta­ble out­look. The credit rat­ing is the high­est qual­ity with min­i­mal credit risk, which in­di­cates the obligor’s ex­tremely strong ca­pac­ity to meet its fi­nan­cial com­mit­ment on the obli­ga­tion.

A sta­ble out­look means the rat­ing is likely to be main­tained or to re­main un­changed in the next twelve months.

The rat­ing and out­look were as­signed based on sig­nif­i­cant lev­els of cash flows and fi­nan­cial flex­i­bil­ity in re­la­tion to debt ser­vice re­quire­ments; ad­e­quate cap­i­tal struc­ture sup­ported by healthy growth in re­tained earn­ings; di­ver­si­fied port­fo­lio, with good growth prospects; and ex­pe­ri­enced man­age­ment team.

On Thurs­day, shares in AboitizPower closed higher by 2.76% or P0.90 at P33.50 each. —

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