PHILIPPINE DAILY INQUIRER: First Gen takes out P3.75-B loan to refinance debt
May 14, 2010

Lopez-led First Gen Corp. said Thursday its board of directors had approved the plan to take out a loan worth P3.75 billion.

In a disclosure to the Philippine Stock Exchange, First Gen said the loan proceeds would be used “to partially refinance the company’s outstanding indebtedness and for other general corporate requirements.”

The loan will come from Banco de Oro Unibank Inc., BDO Leasing and Finance Inc. and BDO Private Bank Inc., it added.

According to First Gen, its board of directors also approved a planned two-year share buy-back program covering up to 300 million of the company’s common shares, representing approximately 9 percent of the company’s outstanding common shares.

The two-year period will start on June 1, 2010 and end on May 31, 2012.

“The company will undertake a buyback transaction only if and to the extent that the price per share is deemed extremely undervalued, share prices are considered highly volatile, or in any other instance where the company believes that a buyback will result in enhancing shareholder value,” First Gen explained.

First Gen said the number of shares and buyback period were still subject to revision by the board of directors, subject to the proper disclosures to regulatory agencies.

It added that the program would not adversely affect the company’s development projects.

“The program will be executed in the open market through the trading facilities of the Philippine Stock Exchange Inc. and be implemented under the supervision of the company’s president/CEO, EVP/COO and EVP/CFO,” First Gen added.

First Gen plans to undertake a number of fund-raising activities this year to finance maturing obligations.
Aside from the five-year loan facility, the company also plans to raise some P5 billion from the issuance of preferred shares in the fourth quarter and another 0 million (roughly P9 billion) through a syndicated loan.

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