Aboitiz Power Corp. plans to issue in the fourth quarter of the year up to P15 billion worth of bonds, with the proceeds intended mainly to help address its financial obligations.
AboitizPower said in a regulatory filing that the issue would be the second tranche of a P30-billion package under its shelf registration with the Securities and Exchange Commission.
“The second-tranche bonds, equivalent to P10 billion and with an oversubscription option of up to P5 billion, are expected to be offered to the public during the fourth quarter of 2018,” it said.
AboitizPower said it would use the proceeds to refinance the medium-term loan of its wholly owned subsidiary Therma Power Inc., repay its short-term loan obligations, and for general corporate purposes.
BDO Capital Corp. was appointed as issue manager as well as joint lead underwriter with BPI Capital Corp. and United Coconut Planters Bank.
Also, AboitizPower said Philippine Ratings Services Corp. gave the planned issue a credit rating of “PRS Aaa” with a stable outlook.
A PRS Aaa rating means the issue is “of the highest quality with minimal credit risk, an indication of the extremely strong capacity of the obligor to meet its financial commitment on the obligation.”
A stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.
Citing a PhilRatings statement, AboitizPower said the rating and outlook were assigned based on the issuer’s significant levels of cash flows and financial flexibility in relation to debt service requirements; adequate capital structure supported by healthy growth in retained earnings; diversified portfolio, with good growth prospects, and experienced management team.