Cirtek resells P545-M bonds to repay debt

cirtek resells p545 m bonds to repay debt - Cirtek resells P545-M bonds to repay debt

CIRTEK Holdings Philippines Corp. has reissued P545.2 million worth of bonds to refinance its short-term debt and support the capital spending of its US-based unit.

The electronics manufacturer told the exchange on Wednesday it listed the debt at the Philippine Dealing and Exchange Corp. (PDEx) earlier this week.

The bonds, which will mature on Feb. 18, 2021, were reissued under Cirtek’s P2-billion commercial paper program. The Securities and Exchange Commission gave the company a permit to sell securities in February.

“The company intends to use the proceeds from the offer to partially retire its short-term obligations maturing in 2020, and to finance working capital requirements of its subsidiary, namely Quintel USA, Inc. as it takes part in the creation of a truly 5G-enabled world,” it said.

The debt securities got a PRS A credit rating from Philippine Ratings Services Corp., which means the company has above average capacity to meet its obligations.

In July, Cirtek listed P494 million of debt on PDEx also maturing on Feb. 18, 2021, under the same P2-billion commercial paper program. Proceeds from the offer were likewise meant to support the company’s short-term loans and the capital expenditures of its US subsidiary.

Cirtek earlier said Quintel USA was seeking to participate in 5G deployment in the US by selling antennas.

On Tuesday, Cirtek told the exchange its board of directors had approved the sale of as many as 33 million preferred shares through a private placement, to be offered to qualified buyers at $1 each.

The shares will come from the company’s unissued preferred B2 shares.

Cirtek’s net income more than doubled to $2.63 million in the first quarter due to improved margins and lower expenses.

Cirtek shares lost 1.57% or nine centavos to P5.65 each at the close of trading on Wednesday. — Denise A. Valdez

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