MPIC issues notes to fund expressway acquisition

MANILA, Philippines- Metro Pacific Investments Corp., the local unit of Hong Kong conglomerate First Pacific Co. Ltd., on Wednesday announced that it will be issuing fixed corporate notes to partially fund its acquisition of the owner and the operator of the North Luzon Expressway (NLEX). Sy-controlled Banco De Oro Unibank has signed a 10-Year Fixed Rate Corporate Notes Issue amounting to P6.75 billion with MPICto provide partial financing for the acquisition of a 67.1-percent ownership interest in Manila North Tollways Corp. (MNTCand a 46-percent stake in Tollways Management Corp. (TMC), the concession-holder and the operator of NLEX, respectively. BDO is the sole noteholder while its investment banking subsidiary, BDO Capital, acted as arranger and underwriter. BDO Trust, likewise, participated as facility agent, registrar, paying agent, collateral agent, and DSRA agent. Total acquisition cost is P12.262 billion, funded by the notes and equity and shareholder advances. The acquisition also granted MPIC the right to operate and manage the 65.8-kilometer Subic-Clark-Tarlac Expressway (SCTEX) direct link between Subic Bay Free Port and Clark Economic Zone. Moreover, it acquired a 34-percent interest in Private Infra Development Corp. which was awarded the concession to extend the NLEX another 88.5 kilometers from Tarlac to Rosario, La Union, when completed in full by 2013.GMANews.TV