PERSONAL CARE products company Splash Corp. is readying a P520-million standby loan to bankroll its acquisition plans barely three months after it took over food processor Barrio Fiesta Manufacturing Corp, a disclosure at the Philippine Stock Exchange on Friday showed.
The Splash board have approved plans to "negotiate to obtain a standby loan of P520 million for acquisition," the disclosure read.
"At present, there is no specific plan yet." Splash Chief Finance Officer Veneranda M. Tomas said in a telephone interview when asked what acquisitions were in the pipeline.
"We will just avail [the loan] for future acquisition...So, anytime we need it, we can withdraw," Ms. Tomas added.
This came on top a decision to spend P600 million from its 2007 fund raising proceeds worth P1 billion to refinance its floating rate loans, the disclosure stated further.
The refinancing was meant to extend the maturity of the loan ahead of its maturity date on August 2012, Ms. Tomas said.
SB Capital Investment Corp. was the issue manager and lead underwriter while Security Bank Corp., Yuchengco-led Rizal Commercial Banking Corp. and Gokongwei-led Robinsons Savings Bank were the note holders.
Splash Corp. Chairman and Chief Executive Rolando B. Hortaleza had said that the note facility would help his company reach its goal of achieving growth in both sales and profits.
The company’s third quarter net income declined by 10.13% to P10.7 million from last year’s P11.9 million due to lower sales and higher costs.
However, Splash Corp.’s January to September comprehensive net income rose by 8.20% to P66.78 million from P61 million from the same period last year.
Shares of the company slid by .47% to P2.10 when the stock market closed on Friday.
"At present, there is no specific plan yet." Splash Chief Finance Officer Veneranda M. Tomas said in a telephone interview when asked what acquisitions were in the pipeline.
"We will just avail [the loan] for future acquisition...So, anytime we need it, we can withdraw," Ms. Tomas added.
This came on top a decision to spend P600 million from its 2007 fund raising proceeds worth P1 billion to refinance its floating rate loans, the disclosure stated further.
The refinancing was meant to extend the maturity of the loan ahead of its maturity date on August 2012, Ms. Tomas said.
SB Capital Investment Corp. was the issue manager and lead underwriter while Security Bank Corp., Yuchengco-led Rizal Commercial Banking Corp. and Gokongwei-led Robinsons Savings Bank were the note holders.
Splash Corp. Chairman and Chief Executive Rolando B. Hortaleza had said that the note facility would help his company reach its goal of achieving growth in both sales and profits.
The company’s third quarter net income declined by 10.13% to P10.7 million from last year’s P11.9 million due to lower sales and higher costs.
However, Splash Corp.’s January to September comprehensive net income rose by 8.20% to P66.78 million from P61 million from the same period last year.
Shares of the company slid by .47% to P2.10 when the stock market closed on Friday.
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