MPIC and Cavitex Holdings Enter into PhP6.77B Financing, Cooperation Agreement
Manila—(PHStocks)—Cavitex Holdings Inc. (formerly Coastal Road Corporation) (CHI) and Metro Pacific Investments Corporation (MPIC, PSE: MPI) and its subsidiary Metro Pacific Tollways Corporation (MPTC) jointly announced a PhP6.77 billion financing and cooperation agreement between CHI and MPTC.
Under the agreement with CHI, CHI will issue a Convertible Note to MPTC which will entitle MPTC the option to convert in the future to: (i) new, non-voting redeemable convertible preference shares; or (ii) subject to securing certain approvals and conditions, into common shares of Cavitex Infrastructure Corp. (formerly UEM-Mara Philippines Corporation) (CIC), which holds the concession for the operation and maintenance of the Manila-Cavite Toll Expressway (Cavitex).
The Cavitex is a 14km long tollroad built in two segments running from Cavite to Laguna and currently has 90,000 vehicle entries a day. The concession for this road extends to 2033 for the originally built road and to 2046 for a subsequent extension.
Under the cooperation agreement, MPTC will provide management assistance to CIC with effect from January 2, 2013. CHI believes that MPTC will be able to use its expertise in operating the NLEX and SCTEX to improve the services that Cavitex currently provides to the riding public and the rapidly growing population of Cavite.
Luis J. Virata, Chairman of CHI, comments, “The proceeds from this financing will be used by CHI to invest in the Aquino administration’s PPP projects, as well as future real estate projects with the Philippine Reclamation Authority.”
Commenting on the agreements Manuel V. Pangilinan, Chairman of MPIC and MPTC, says, “I am pleased that through our agreements MPTC will be able to assist in the future development of Cavitex and possibly adjoining roads in this rapidly growing part of Metro Manila.”
Jose Ma. K. Lim, MPIC’s President and CEO, adds, “This is another step in our long signaled determination to further expand and develop Metro Manila’s tollroads.”
“We are looking forward to delivering to motorists on the Cavitex the same standard of customer service and excellence that MPTC already provides on the NLEX and the SCTEX,” Ramoncito S. Fernandez, CEO of MPTC, says.