AYALA-LED Globe Telecom, Inc. said it has launched a young offer for its outstanding 4.2% senior perpetual capital securities issued in 2021 as a part of its liability management program.
In a regulatory filing on Tuesday, Globe said it has offered to buy any and all outstanding 4.2% senior perpetual capital securities at $1,000 per $1,000 principal amount, with Morgan Stanley acting as dealer manager.
The corporate said it would also pay holders whose securities are accepted for purchase on the settlement date an accrued distributions payment along with the tender price.
“Any securities validly tendered and purchased by the issuer pursuant to the tender offer will probably be canceled on the settlement date and won’t be reissued or resold,” the corporate said.
The tender offer, which was launched on April 14, will expire on April 22 unless prolonged, reopened, or terminated, Globe said, adding that the settlement date and payment of the tender consideration will probably be on April 24.
The corporate said the buyback forms a part of a program to retire perpetual debt, which carries ongoing payout obligations.
Globe issued the $600-million securities in October 2021 at an initial distribution rate of 4.2%, payable semi-annually.
“In the event that they are only exercising and buying it back before the step-up, that’s normal,” BDO Capital and Investment Corp. President Eduardo V. Francisco said by phone on Tuesday, adding that corporations typically buy back perpetual securities to avoid redeeming them at the next value if prices rise.
In accordance with Globe’s earlier disclosure, the securities haven’t any maturity date but feature a step-up structure that makes redemption costlier over time. They carry an early repayment option by August, with coupons rising if left outstanding.
“That’s a superb sign because they think they’ll refinance it at a lower rate. It shows that they’ve liquidity and the boldness that they’ll finance it,” Mr. Francisco said.
For this 12 months, Globe expects low- to mid-single-digit revenue growth following a decline in 2025.
Globe reported a 4.12% decline 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 Tuesday, Globe shares rose by P3, or 0.18%, to P1,633 each. — Ashley Erika O. Jose