The Securities and Exchange Commission (SEC) has approved the P20-billion shelf registration of fixed rate bonds of Converge Information and Communications Technology Solutions, Inc.
The Commission En Banc resolved to render effective the registration statement of Converge covering up to P20 billion fixed-rate bonds to be offered in tranches within three years.
For the first tranche, the listed internet provider will offer to the public up to P5 billion of bonds due 2027, with an oversubscription option of up to P5 billion.
Assuming the oversubscription option is fully exercised, the company could net up to P9.87 billion from the offer.
Proceeds will be used to fund the company’s capital expenditures in connection with plant equipment and other property, plant, and equipment and intangible assets for the expansion of its nationwide fiber network.
The bonds comprising the first tranche will be offered at face value from March 14 to 18, and will be listed on the Philippine Dealing & Exchange Corp. on March 25, according to the latest timetable submitted to the SEC.
Converge has engaged BDO Capital & Investment Corporation as the issue manager for the transaction, who will also work with BPI Capital Corporation as joint lead underwriter and bookrunner.