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EDC refinances $106m loan for Bac-Man rehabilitation

EDC refinances $106m loan for Bac-Man rehabilitation Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 10 Sep 2015

Energy Development Corp. (EDC) has signed a $106 million loan agreement with three banks for the refinancing of the rehabilitation cost of the Bac-Man geothermal plants.

Reported today from the Philippines, Bac-Man Geothermal Inc., wholly-owned unit of Energy Development Corp. (EDC), has signed a P5-billion ($106 million) loan agreement with three local banks to refinance the rehabilitation cost of the Bac-Man geothermal plants and other capital expenditures.

EDC disclosed to the Philippine Stock Exchange Bac-Man Geothermal signed agreements with Bank of the Philippine Islands, BDO Unibank Inc. and Security Bank Corp.

BDO Capital & Investment Corp. acted as sole bookrunner, while BDO Capital & Investment Corp., BPI Capital Corp. and SB Capital Corp. served as joint Lead arrangers of the transaction.

EDC also disclosed the board approved the declaration of a special cash dividend of P0.11 per share to common shareholders of record as of September 23, 2015, payable on or before October 7, 2015.

“We acquired Bacman for $28 million. There were rehab cost incurred since then advanced by EDC. The P5 billion ($106 million) will be used to reimburse some of these costs back to EDC. EDC will then use the money  for other capex including Bacman 3,” EDC vice president for corporate finance Erwin Avante said.

Source: Manila Standard