Monday, September 5, 2016
Globe Telecom Signs P20 Billion Term Loan Facility
Globe Telecom, Inc. signed a 12-year and 15-year P20 billion term loan facility arranged by First Metro Investment Corporation with Metropolitan Bank and Trust Company as lender. The loan shall be used to finance the acquisition of a fifty percent (50%) equity interest in Vega Telecom, Inc., Bow Arken Holdings Company, Inc. and Brightshare Holdings Corporation (collectively, the “Companies”), including capital expenditures related to the acquisition.
Referring to our related disclosure of May 30, 2016, Globe Telecom’s acquisition relates to the Companies owning and operating telecommunications services including frequencies, licenses, and all other assets. Given that Philippine telcos are having difficulty improving the quality of mobile data services because of continued challenges with site acquisition for cell sites and the intensely bureaucratic permitting process of many local government units, having the additional spectrum will provide some relief as it will immediately add new capacity with the existing number of sites.
Mobile internet customers are expected to benefit from the added capacities and greater geographic coverage that the additional spectrum can provide, particularly that of the 700 MHz frequency. This exemplifies Globe Telecom’s continuous commitment and investments in improving the network and quality of service. These investments will enable Globe to support the data needs of existing and new customers and allow them to enjoy their digital lifestyles.