Globe buying back 600 million dollar securities to pay off debts

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April 15, 2026 | 12:00am

MANILA, Philippines — Telco-to-tech giant Globe Telecom Inc. has embarked on a buyback program for its $600-million securities aligned with efforts to cut liabilities and sustain positive cash flow.

In a disclosure to the Philippine Stock Exchange, Globe said it is launching a tender offer to purchase any and all outstanding securities it sold in 2021.

Globe said it is pricing the offer at $1,000 per $1,000 principal amount of securities.

Likewise, Globe will pay securities holders on the settlement date an accrued distribution fee, on top of the tender price. Securities tendered will be canceled on the settlement date and will no longer be reissued or resold.

Globe said it is undertaking the offer in line with initiatives to improve finances by cutting debts. The telco is aiming to sustain its positive cash flow to stay out of financial trouble, especially as the connectivity industry struggles to grow in a saturated market.

“Globe is undertaking the tender offer as part of its active liability management program,” Globe said.

The telco tapped consultancy giant Morgan Stanley to serve as dealer manager for the offer.

Globe said the offer would run until April 22, 4 p.m. (London time), unless extended, reopened, revoked or terminated.

Results will be announced as soon as possible after the deadline, likely on April 23. Afterward, Globe is settling the payment for successful tenders on April 24.

At the height of the pandemic in 2021, the telco returned to the international debt market to issue $600 million in securities with an interest rate of 4.2 percent, payable on a semi-annual schedule. Proceeds were used primarily to fund capital expenditures.

Back then, Globe was ramping up spending to expand its infrastructure network, as the pandemic increased the demand for connectivity services catering to work-from-home arrangements.

Now, Globe is shifting gears, prioritizing positive cash flow by limiting debts and slashing capex to withstand the industry headache of a saturating market, among others.