Lopez Holdings offers to buy remaining debt

MANILA, Philippines - Lopez Holdings Corp. has offered to purchase its remaining debt, giving its creditors the opportunity to sell back to the investment holding firm at full face value.

In a disclosure to the Philippine Stock Exchange, Lopez Holdings said its board has authorized the purchase for cash at their par value any and all of its outstanding $150 million 7.875 percent notes (Eurobonds) due 2002 issued on June 19, 1997, and Series A-2 Long Term Commercial Papers (LTCPs) issued on Sept. 17, 1996 and Oct. 1, 1996.

The company was also authorized to undertake a consent solicitation for proposed amendments to the trust agreement dated Sept. 12, 1996 covering the LTCPs.

Salvador G. Tirona, president of Lopez Holdings, said the tender offer is part of the financial restructuring process being undertaken to ensure the company’s long-term financial health.

“These are the steps we deem necessary to finally clean up the books and return to viability,” he said.

The offer to purchase the Eurobonds began on Aug. 2, 2011 and expires on Sept. 1, 2011.

Lopez Holdings appointed ING Bank N.V. Singapore Branch as the dealer manager and Bondholder Communications Group LLC as the information and tender agent for the Eurobonds.

The offer to purchase the LTCPs and the consent solicitation, on the other hand, begins on Aug. 3, 2011 and expires on Sept. 1, 2011. The company has tapped Securities Transfer Services Inc. as the information agent for the LTCPs offer and the consent solicitation.

The payment date for both offers is expected on or around Sept. 6, 2011.    

To date, there remain outstanding $20.616 million worth of Eurobonds and P864.614 million worth of LTCPs.