PLDT seeks bondholders’ OK for changes in trust indenture

Telecommunications and digital services provider PLDT Inc. is soliciting consent from bondholders to amend trust indenture of retail bonds due 2021 and 2024, a move seen to provide the company greater flexibility to support higher levels of capital expenditures and general corporate requirements.

In a disclosure to the Philippine Stock and Exchange yesterday, PLDT said it will undertake a 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 company seeks to amend its maximum stand-alone total debt to EBITDA ratio stipulated in the trust indenture from 3.0:1 to 4.0:1.

“The proposed amendment seeks to provide the issuer with greater flexibility to support, if necessary, higher levels of capital expenditures and general corporate requirements given the pipeline of network expansion programs that PLDT would like to undertake and in order to serve the increasing data requirements of its customers so as to strengthen PLDT’s market position,” the company said.

“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.

PLDT intends to commence with the consent solicitation exercise on Oct. 16. It said it would expire on Nov. 15, unless such expiration date is adjusted to an earlier or later date based on the company’s sole discretion.

BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. have been appointed as advisors for the consent solicitation exercise.

PLDT said each bondholder of record shall be receiving a copy of the consent solicitation statement explaining in detail the proposed amendment and the terms and conditions of the exercise.