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| Lopez Holdings makes tender offer for remaining debt |
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Lopez Holdings Corporation (PSE: LPZ) announced a tender offer for its remaining debt, giving creditors the opportunity to sell approximately US$41 million back to Lopez Holdings at full face value.
Pursuant to resolutions dated August 2, 2011, the Lopez Holdings board of directors authorized the corporation to offer to purchase for cash at their par value, any and all of its outstanding US$150,000,000 7.875% Notes (Eurobonds) due 2002 issued on June 19, 1997, and Series A-2 Long Term Commercial Papers (LTCPs) issued on September 17, 1996 and October 1, 1996. The company was also authorized to undertake a consent solicitation for proposed amendments to the Trust Agreement dated September 12, 1996 covering the LTCPs. The offer to purchase the Notes Eurobonds began on August 2, 2011 (9 a.m., New York City) and expires on September 1, 2011 (5 p.m., New York City). Lopez Holdings appointed ING Bank N.V., Singapore Branch, as the Dealer Manager, and Bondholder Communications Group, LLC as the Information and Tender Agent for the Eurobonds. The offer to purchase the LTCPs and the consent solicitation begins on August 3, 2011 (9 a.m., Manila) and expires on September 1, 2011 (5 p.m., Manila). The Corporation appointed Securities Transfer Services, Inc. as the Information Agent for the LTCPs Offer and the Consent Solicitation. The payment date for both offers is expected on or around September 6, 2011. To date, there remain outstanding US$20,616,000 worth of Eurobonds and P864,614,542 worth of LTCPs. Lopez Holdings began restructuring US$560 million in debt in 2002, after investees in telecom and water distribution were seriously crippled by the Asian financial crisis in 1997. The sale of stakes in toll roads, property development and a tertiary hospital helped the company recover its bearings in the last five years. The company also began buying back some debt, using dividends provided by successful investments in media/broadcasting and power generation. Lopez Holdings president Salvador G. Tirona said the tender offer is part of the financial restructuring process being undertaken to ensure the company’s long-term financial health. “These are the steps we deem necessary to finally clean up the books and return to viability,” he said. Comments (0)
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