MANILA, Philippines—Ayala-led Globe Telecom is extending its early tender offer period to buy Bayan Telecommunications obligations from the smaller telco’s creditors, in line with moves for the two firms’ impending merger.
In a statement, the company said the early tender offer date supposed to end on November 19 was extended up to the 27th, subject to a further extension or early termination as may be decided by Globe.
“All holders who validly tender their notes on or prior to the extended early tender date, and whose notes are accepted for the purchase, will receive the total consideration,” Globe said on Wednesday.
Globe has offered to pay $280 for every $1,000 remaining principal amount of notes if less than 75 percent accept the tender; $290 if it’s over 75 percent but less than 80 percent; $300 if more than 80 percent but less than 85 percent; and $310 if it’s over 85 percent.
Globe estimates that the remaining principal amount for the notes is at about $184.5 million.
Holders of Bayan obligations that tender their notes before the end of the early tender offer date may withdraw their tenders. Tenders made after that may not be withdrawn.
The acquisition of Bayan’s obligations will involve a tender offer to purchase for cash any and all of the 13.5-percent senior notes originally due last 2006 issued by Bayan. The tender offer will push through only if creditors holding at least 70 percent of the debt agree to sell their holdings to Globe.
If the tender offer succeeds, Globe will become the major creditor of Bayan and will perform a role similar to Bayan’s creditors in respect to its rehabilitation plan, including representation in the monitoring committee.
In its disclosure, Globe said preliminary results of its tender offer showed that 82 percent of the aggregate remaining principal amount of loans “appears to have been tendered.”
Likewise, 64 percent of remaining obligations by Bayan subsidiary Radio Communications of the Philippines Inc. (RCPI) were successfully tendered as of November 19.
For the tender offer to push through, Globe said it wanted to acquire at least 70 percent of obligations by Bayan and RCPI.