Metro Pacific Tollways, Cavitex Holdings ink P6.77-B  financing deal

The Metro Pacific Investments Corporation (MPIC) on Thursday said subsidiary Metro Pacific Tollways Corporation has entered into a P6.77-billion financing and cooperation agreement with Cavitex Holdings Inc., formerly Coastal Road Corporation.

  

Cavitex will issue convertible notes to Metro Pacific Tollways which entitles the Metro Pacific unit the option to convert the notes into new, non-voting redeemable preferred shares, parent Metro Pacific disclosed to the Philippine Stock Exchange,

 

Metro Pacific Tollways also will have the option to convert the notes into common shares of Cavitex Infrastructure Corp. (formerly UEM-Mara Philippines Corporation), which holds the concession for the operation and maintenance of the Manila-Cavite Toll Expressway.

 

“The proceeds from this financing will be used by Cavitex Infrastructure to invest in the Aquino administration’s PPP (public-private partnership) projects, as well as future real-estate projects with the Philippine Reclamation Authority,” said Cavitex Holdings chairman Luis Virata.

 

Under the agreement, Metro Pacific Tollways will provide Cavitex Infrastructure with management expertise starting January 2, 2013. Cavitex Holdings believes that MPTC will be able to use its experience in operating North Luzon Expressway (NLEX) and Subic-Clark-Tarlac Expressway (SCTEX) to improve the services that Cavitex Infrastructure currently offers the riding public, especially with the rapidly growing population of Cavite.

 

In the disclosure Manuel Pangilinan, who chairs Metro Pacific Investments, said, “I am pleased that through our agreements Metro Pacific Tollways will be able to assist in the future development of Cavitex and possibly adjoining roads in this rapidly growing part of Metro Manila.”

 

Jose Ma. Lim, Metro Pacific Investments president and chief executive officer also said, “this is another step in our long-signaled determination to further expand and develop Metro Manila’s toll roads.”

 

“We are looking forward to delivering to motorists on the Cavitex the same standard of customer service and excellence that Metro Pacific Tollways already provides on the NLEX and the SCTEX,” said Ramoncito Fernandez, Metro Pacific Tollways chief executive.

 

The 14-kilometer Manila-Cavite Toll Expressway accommodates 90,000 vehicles a day. Its original concession is up to 2033, and its extension has up to 2046. — VS, GMA News