FPC completes $115-M bond issue

Hong Kong-based First Pacific Co. Ltd. (FPC) announced yesterday the completion of a $115-million issue in secured bonds by its wholly owned subsidiary CAB Holdings Ltd.

First Pacific owns a 24.4-percent interest in the Philippine Long Distance Telephone Co. (PLDT).

The bonds have an interest rate of 8.25 percent per annum payable six monthly amortizations and mature on July 29, 2006 at their aggregate principal amount.

Under the terms of the bonds, CAB does not have the right to unilaterally redeem the bonds prior to their maturity, except in the event of certain changes affecting taxes in Mauritius, where CAB is incorporated.

The bonds are secured by a pledge over shares representing approximately a 51.5-percent interest in PT Indofood Sukses Makmur Tbk (Indofood) held by CAB and security over the escrow account.

First Pacific and its subsidiaries hold an aggregate 51.6-percent interest in Indofood and were previously pledged as security for the repayment of First Pacific’s indebtedness to ING.

The net proceeds of the bonds have been applied principally to prepay an outstanding secured indebtedness of approximately $103 million, to ING Bank NV, Hong Kong which was originally due and repayable in December 2003.