GLOBE TELECOM, Inc. said it has repurchased $426.42 million of its dollar-denominated perpetual securities following the expiration of its tender offer, as a part of its effort to cut back debt and improve money flows.
In a regulatory filing on Thursday, the listed telecommunications company said the quantity represents the securities tendered and accepted for purchase on the close of the offer.
The tender offer, which ran from April 14 to 22, will probably be settled on April 24. Globe said the remaining principal amount of the securities stood at $173.58 million after the transaction.
The buyback forms a part of the corporate’s $600-million senior perpetual capital securities issued in 2021. Globe had offered to buy any and all outstanding 4.2% senior perpetual securities at $1,000 per $1,000 principal amount, with Morgan Stanley acting as dealer manager.
The corporate said the transaction is an element of a broader effort to retire perpetual debt, which carries ongoing distribution obligations.
Globe issued the $600-million securities in October 2021 at an initial distribution rate of 4.2%, payable semi-annually.
In line with an earlier disclosure, the securities haven’t any maturity date but include a step-up feature that increases the associated fee of keeping them outstanding over time. In addition they carry an early redemption option by August, with coupon rates set to rise if not redeemed.
For 2026, Globe expects low- to mid-single-digit revenue growth following a decline in 2025.
The corporate reported a 4.12% drop in net income to P23.3 billion in 2025 from P24.3 billion in 2024, weighed down by higher depreciation and interest expenses and lower revenues.
On the local bourse on Thursday, Globe shares rose P2, or 0.12%, to shut at P1,650 apiece. — Ashley Erika O. Jose