MEGAWORLD CORP. yesterday said it will be tapping lenders before July to pay off an older $100-million loan due this year.
The Andrew L. Tan-led developer will issue dollar-denominated corporate notes to refinance debts and fund other expenses, a disclosure filed with the local bourse showed.
“Megaworld authorized the issuance of seven-year US-dollar-denominated corporate notes, which will mature in 2018,” the company said.
“The company intends to use the net proceeds from the issue of the notes to refinance certain of its outstanding indebtedness and for general corporate purposes,” it added.
“The terms and conditions of the notes, including issue value and interest rate, will be finalized at a later date,” the company said.
The new borrowing should help the company buy more time to pay off debts, John T. Hao, investor relations head of Alliance Global’s property arm Megaworld Corp., said yesterday in a phone interview.