Globe launches tender offer for $600-M perpetual securities
Globe Telecom Inc. has launched a tender offer that would move it closer to redeeming its outstanding dollar-denominated perpetual capital securities issued in 2021. This is part of the firm’s ongoing liability management program.
In a disclosure on Tuesday, the Ayala-led telco said the tender offer is priced at $1,000 per $1,000 principal amount, along with an accrued distribution payment to holders whose securities are accepted.
This is meant to cover Globe’s $600-million senior perpetual capital securities issued in October 2021. These carried an initial distribution rate of 4.2 percent and were structured as equity instruments.
“Globe is undertaking the tender offer as part of its active liability management program,” it said. The firm that the offer would cover “any and all outstanding.”
The tender offer began on April 14 and will run until April 22. Results are expected on April 23. Settlement and payment of the tender consideration is targeted for April 24.
Morgan Stanley has been appointed as dealer manager for the transaction.
The 2021 issuance marked Globe’s return to the international capital markets following its dual-tranche US dollar-denominated senior notes issuance in 2020.
At the time, the offer was more than three times oversubscribed. This enabled Globe to upsize the deal to $600 million. Proceeds were earmarked for capital expenditures, refinancing of obligations and general corporate purposes.
Last March, Globe also launched a sale of non-voting perpetual preferred shares, raising P25 billion.
The telco planned to use about P14.89 billion from the base offer proceeds to redeem the same $600 million in senior perpetual capital securities. Disbursement was expected between April and November.
Globe reported a 4.12-percent decline in net income in 2025 to P23.3 billion, weighed down by higher depreciation and interest expenses, even as consolidated gross service revenues reached a record P165.1 billion.
