The proposed bond issuance of ABS-CBN Corp. was assigned an issue credit rating of “PRS Aaa” by Philippine Rating Services Corp. (PhilRatings).
The proposed fixed-rate bond issuance will total P10 billion with 7-year and 10-year tenors. The proceeds will be used to fund the company’s capital expenditure program and general working capital.
In November 2012, ABS-CBN said that its board approved the issuance of P5-billion retail corporate bonds with an option to raise an additional amount of up to P5 billion in 2014.
The proceeds of the bond issue will be used for the development of sound stages.
Earlier, Melissa Ortiz, ABS-CBN head of Investor Relations, said that, “Planned sound stages for study are also for production for TV and movies, cause we are building up our inventory of programming content.”
She added that, “Bulk would be for the sound stages and production forward.”
In 2011, the broadcasting firm announced the construction of a state-of-the-art sound stage facility at a cost of P6 billion.
The Lopez-led company said that the sound stage facility lies in a 15-hectare lot in San Jose del Monte, Bulacan, that was acquired by the company.
The facility will be comprised of six sound stages and a backlot.
Obligations rated “PRS Aaa” are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. “PRS Aaa” is the highest rating assigned by PhilRatings.