MANILA – The Securities and Exchange Commission (SEC) has approved ABS-CBN Corp’s plan to raise debt next week.
In a text message, SEC Commissioner Juanita Cueto said the up to P10-billion retail bond issuance of the Lopez-owned broadcasting firm was approved during Thursday's en banc meeting.
Documents from the corporate regulator show the sale of debt securities will be divided into two tranches. The first tranche involves the issuance of P4 billion worth of seven-year bonds and P1 billion worth of 10-year bonds from January 27 to February 10.
The seven-year bonds will carry an interest rate of 4.2375 percent per annum, while the 10-year bonds will have an interest rate of 4.2979 per annum.
BDO Capital & Investment Corp, BPI Capital Corp and The Hongkong and Shanghai Banking Corp Limited are the underwriters of the transaction.
ABS-CBN will raise the second tranche of up to P5 billion within the year.
The company will allot P2 billion from the proceeds of the debt sale for the construction of soundstages on a 15-hectare lot in Bulacan, while the remaining amount would be used for its inventory of programming content.
In the first nine months of 2013, ABS-CBN posted earnings of P1.89 billion, up by 22 percent from P1.555 billion in the same nine-month period the previous year. Consolidated revenues of P25.227 billion from advertising and consumer sales increased 16 percent from P21.79 billion in 2012.