Globe Telecom to prepay $300 million worth of bonds (Philippines)

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Globe Telecom to prepay $300 million worth of bonds (Philippines)

March 15, 2007

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Globe Telecom plans to refinance a part of its loan (raised through bonds), worth $300 million, by April 2007.

The move, approved by the firm's creditors, will enable Globe to save as much as P2.3 billion in interest payments over the remaining five-year life of the bonds. The prepayment, however, will have a one-time impact on Globe's net income of P1.17 billion in 2007, because of the bond redemption premium and decline in the market-to-market value of the call option.