(Update) First Gen’s US$ 100-M notes facility to finance capex next year‏

December 18, 2010 2:20 am 

MANILA, Dec. 17 –Lopez-controlled First Gen Corp. signed on Friday a US$ 100-million notes facility agreement with Banco de Oro Unibank, Inc. to fund its investment program, capital requirements and growth initiatives scheduled next year.

In a disclosure to the Philippine Stock Exchange, First Gen, whose primary business is power generation, said that BDO Capital and Investment Corp. acted as arranger of the notes facility.

"The facility will be equally divided between two tranches: the tranche A facility, which has a tenor of six years from the issue date and a grace period for principal repayment of 24 months; and the tranche B facility, which has tenor of seven years from issue date and a grace period for principal repayment of 36 months," First Gen said.

First Gen also plans to issue preferred shares worth P5 billion to P7 billion in the first quarter next year to finance its acquisitions and other potential investments.

"We're looking at issuing perpetual preferred shares, we're hoping anywhere from P5 billion to P7 billion in preferred shares. That's for the acquisitions and investments," First Gen president Francis Giles Puno earlier said.

Puno said First Gen was also raising financing to partially fund its acquisition of the BG Group's 40 percent stake in the 1,000-megawatt (MW) Sta. Rita and 500-MW San Lorenzo gas-fired power plants.

"That is if we're able to acquire the BG stake then that'll be used to partly fund the BG stake. That is just an option. We are still exploring our options," he said.

The BG Group announced in September that it has forged an agreement with Korea Electric Power Corp. to sell its 40 percent stake in the gas plants for US$ 400 million.

The transaction is "subject to standard completion adjustments, including interest to be paid to BG Group upon closing which is expected in the first quarter."

Puno said they would also use the proceeds of the preferred shares to refinance the call option on the shares of First Gen's subsidiary Energy Development Corp.

"We also have a call option on Energy Development shares so we have to fund that. Hopefully we''ll do that by March next year. The call option's about US$ 75 million, the one we entered into with the EDC shares owned by the STI group," he said.

The Lopez Group has a 20 percent market share of the power market for Luzon and 21 percent share in the Visayas.

First Gen has a total installed capacity of 3,047.4 MW which are mostly renewable energy power facilities. (PNA) RMA/ASF/utb

Comments

One Response to “(Update) First Gen’s US$ 100-M notes facility to finance capex next year‏”

  1. (Update) First Gen's US$ 100-M notes facility to finance capex ... « capexcapex on December 18th, 2010 2:45 pm

    […] the original: (Update) First Gen's US$ 100-M notes facility to finance capex … Otros blogs, capex   banco, capex, friday, notes-facility, signed-on-friday   […]