MNTC issues notes to fund expenses, loans

Manila North Tollways Corp. (MNTC) is tapping local banks to finance its corporate expenses and maturing obligations for the year, the highway operator said in a disclosure Monday. It signed a corporate note facility agreement with several local lenders worth P6.211 billion, the subsidiary of Pangilinan-led Metro Pacific Tollways corp. (MPTC) said. BDO Capital Investment Corp., BPI Capital Corp. and PNB Capital and Investment Corp. jointly arranged the facility. MNTC will issue five-, seven- and 10-year notes, bearing a 100 basis-point premium over the rates of government securities of the same tenors, to cover the financing arrangement. “The proceeds of the issuance will be used to refinance a portion of MNTC’s existing Philippine Peso loans and for other general corporate purposes," the company said. “The Notes will represent senior unsecured obligations of MNTC," it added, without naming the financial institutions that would subscribe to its corporate issue. MNTC currently operates the North Luzon Expressway (NLEX), which spans from Quezon City to Pampanga. It earlier won the management contract for the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX). MNTC said it wants to officially take over the operations of SCTEX this year and start working on a more seamless connection with NLEX. Projects in group’s portfolio include Segments 9 and 10, or the Harbor Link project that will connect NLEX with the Manila port area in Tondo. Parent MPTC also has a proposal to construct the so-called connector road — a 13-kilometer elevated road that will link NLEX with South Luzon Expressway (SLEX). The company would refinance loans to take advantage of low interest rates for lower financing expenses, MNTC president Chris Lizo earlier said. The toll road unit of Metro Pacific Investments Corp. chaired by tycoon Manuel V. Pangilinan, MPTC is the local unit of Hong Kong’s First Pacific Co. Ltd. — VS, GMA News