Philippine telco Globe Telecom has launched a tender offer to acquire Bayan Telecommunications’ US$185m debt.
The company is looking to purchase the 13.5% senior notes, which were initially due in 2006, on the condition that 70% of bondholders agree…
Philippine telco Globe Telecom has launched a tender offer to acquire Bayan Telecommunications’ US$185m debt.
The company is looking to purchase the 13.5% senior notes, which were initially due in 2006, on the condition that 70% of bondholders agree to the transaction.
Indebted local telco Bayantel has been subject to court-supervised rehabilitation proceedings since 2003, following debt-structuring talks with creditors.
The original notes issued totalled US$200m but the remaining amount is US$184.5m, according to a statement Globe made to the stock exchange yesterday.
Citigroup is serving as dealer manager for Globe’s tender offer, which expires on 18 December.
Globe added in the stock exchange announcement that it is offering to purchase Bayantel’s subsidiary Radio Communications of the Philippines in a concurrent offer.
“The tender offer is representative of Globe’s belief in the value of Bayantel as a nationally enfranchised entity,” said Albert de Larrazabal, CFO at Globe in a separate statement today.
“Potentially combining Globe’s assets and capabilities with Bayantel through collaborative business efforts will enable both companies to become more competitive and help accelerate the completion of Bayentel’s rehabilitation.”
Globe also recently received regulatory approval from the National Telecommunications Commission (NTC) for joint use of Bayantel’s assigned frequencies 1750-1760MHz and 1845-1855MHz.
