ABS-CBN Corp. is exercising the option for the early redemption of its P6-billion bond issuance due in February 2021.
“ABS-CBN intends to exercise its option for early redemption of ABS-CBN’s seven-year bonds (due February 2021), five years and six months from issue date, at the early redemption price of 101.0%,” the Lopez-led media giant said in a disclosure to the stock exchange Monday.
It added that the company has already notified BDO Unibank, Inc., the trustee in the bond issuance, of ABS-CBN’s intention to redeem the bond ahead of schedule.
The listed broadcasting giant listed P6 billion worth of retail bonds in the Philippine Dealing and Exchange Corp. on Feb. 10, 2014 with a fixed interest rate of 5.335% per annum.
This is the first tranche of the company’s P10-billion debt securities offering that was approved by the Securities and Exchange Commission in January 2014. ABS-CBN tapped BDO Capital & Investment Corp., BPI Capital and Hongkong and Shanghai Banking Corp. as joint-issue managers for the issuance.
When the company issued the first tranche of bonds in February 2014, Philippine Rating Services Corp. (PhilRatings) gave the company a PRS Aaa issue credit rating, which is the highest rating given by the agency.
During the first quarter of the year, ABS-CBN grew its attributable net income by 89.2% to P856.35 million, driven by a 24.4% increase in advertising revenues at P5.4 billion.
The company said it wants to focus on boosting its digital business this year, as it faces the possibility that its legislative franchise which expires in 2020 would not be renewed. President Rodrigo R. Duterte has been vocal about his opposition to the renewal of ABS-CBN’s franchise, which was not passed by the 17th Congress. — Denise A. Valdez