Globe launches tender offer for $600-M perpetual securities
AYALA-LED Globe Telecom, Inc. said it has launched a tender offer for its outstanding 4.2% senior perpetual capital securities issued in 2021 as part of its liability management program.
In a regulatory filing on Tuesday, Globe said it has offered to purchase 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 company said it will also pay holders whose securities are accepted for purchase on the settlement date an accrued distributions payment together with the tender price.
“Any securities validly tendered and purchased by the issuer pursuant to the tender offer will be canceled on the settlement date and will not be reissued or resold,” the company said.
The tender offer, which was launched on April 14, will expire on April 22 unless extended, reopened, or terminated, Globe said, adding that the settlement date and payment of the tender consideration will be on April 24.
The company said the buyback forms 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.
“If they are just exercising and buying it back before the step-up, that is normal,” BDO Capital and Investment Corp. President Eduardo V. Francisco said by phone on Tuesday, adding that companies typically buy back perpetual securities to avoid redeeming them at a higher value if prices rise.
According to Globe’s earlier disclosure, the securities have no 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 is a good sign because they think they can refinance it at a lower rate. It shows that they have liquidity and the confidence that they can finance it,” Mr. Francisco said.
For this year, 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.
At the local bourse on Tuesday, Globe shares rose by P3, or 0.18%, to P1,633 each. — Ashley Erika O. Jose
