MANILA - ABS-CBN Corp has secured a loan from a local insurance company to finance its capital expenditure for this year.
In a disclosure to the Philippine Stock Exchange, the Lopez-owned broadcasting company said it has obtained a P1 billion loan from the Philippine American Life and General Insurance Co (Philamlife).
The loan has a 10-year term with a fixed interest rate of 5.4 percent per annum.
"The loan proceeds will be used to partially finance the company's capital expenditure requirements and general working capital purposes," ABS-CBN said.
ABS-CBN chief financial officer Aldrin M. Cerrado had said the company is allotting P4 billion for its capex this year, the same as last year.
Of the total capex, P1 billion would be spent on program rights and the remaining P3 billion for the expansion of its pay-TV and digital TV rollout.
Earlier, ABS-CBN raised P6 billion from the first tranche of its P10 billion in fixed-rate bonds. The bond has a tenor of seven years and carries a coupon rate of 5.335 percent per annum.
The Securities and Exchange Commission (SEC) earlier authorized the company to issue up to P10 billion in fixed-rate bonds in one or two tranches.
Part of the proceeds would be used to construct sound stages, which when completed would increase production quality and bring down the cost of location shoots.