Globe preferred shares offer up to 6.7631% dividend
Ayala-led Globe Telecom Inc. has set the final dividend rates for its upcoming perpetual preferred share sale, valued at up to P25 billion, as the company moves to refinance existing capital securities and support capital expenditures.
In a disclosure to the local bourse on Wednesday, the telco giant said the base offer comprised 7.5 million nonvoting preferred shares priced at P2,000 each, for a maximum value of up to P15 billion.
Globe has also set an oversubscription option of up to 5 million additional shares, which could raise another P10 billion.
If fully subscribed, the offer could generate total gross proceeds of up to P25 billion.
Globe set the initial dividend rate at 6.1179 percent per annum for Series A shares (redeemable in five years) and 6.7631 percent per annum for Series B shares (redeemable in 10 years).
Dividend rate on Series A will rise after the fifth year of issuance, unless otherwise redeemed. The dividend rate will be reset based on the 10-year benchmark rate, with the step-up spread set at 3 percent.
On the other hand, Series B shares has a synthetic maturity of 10 years, which means the dividend rate will have to be raised if Globe is unable to redeem after this period. Its step-up mechanism is tied to the 20-year reference rate and the same 3-percent spread.
Globe plans to use about P14.89 billion from the base offer proceeds to redeem $600 million in senior perpetual capital securities issued in November 2021. The disbursement is expected between April to November 2026.
The offer period will run from Feb. 13 to Feb. 20.
