Saturday, June 16, 2012

GT Capital realigns IPO proceeds use

Business Mirror - GT CAPITAL Holdings Inc., the newly listed investment holding company of businessman George Ty, is making adjustments to the use of initial public offering (IPO) proceeds pertaining to the repayment of debt.

In a filing to the Philippine Stock Exchange on Wednesday, GT Capital’s board agreed to use the P2.8 billion originally allocated to pay obligations with Union Bank of the Philippines to partially settle a P4-billion term loan with Metropolitan Bank and Trust Co. GT Capital partly owns Metrobank.

The loan, which will be paid out by June 30, was used by GT Capital to increase its stake in power unit Global Business Power Corp.

Based on its offer prospectus, GT Capital planned to use the amount to fully settle a P2-billion term loan with UnionBank and to partially cover P800 million out of a P5-billion notes facility.

The P2-billion UnionBank loan, availed in 2011, has a term of five years while the P5-billion notes facility, availed in 2010, is divided into a P4.2-billion three-year tranche and an P800 million five-year tranche.

GT Capital completed in April the Philippines’s biggest IPO since Cebu Air Inc. in 2010, raising P21.6 billion in primary and secondary offerings that were well received by local and international investors.

Most of the primary proceeds will be used by the company to increase ownership in its power and real estate units alongside investments in expansion.

GT Capital’s units include Global Business Power Corp., Federal Land Inc., Metrobank, Toyota Motor Philippines, and Philippine AXA Life Insurance Corp.

GT Capital shares rose 0.4 percent to P500 each on Wednesday, giving it a market value of P79 billion. 

For more details on Federal Land projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.

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