Converge Information And Communications Technology : Clarification Of News Reports | MarketScreener

This is in kind reply to your request for explanation to the news article entitled “SEC approves Converge P20-B bonds” posted in Manila Bulletin (Online Edition) on March 23, 2022. The article reported:

“The Securities and Exchange Commission (SEC) has approved the P20-billion shelf registration of fixed rate bonds of Converge Information and Communications Technology Solutions, Inc.

The Commission En Banc resolved to render effective the registration statement of Converge covering up to P20 billion fixed-rate bonds to be offered in tranches within three years.

. . . .

Assuming the oversubscription option is fully exercised, the company could net up to P9.87 billion from the offer.

Proceeds will be used to fund the company’s capital expenditures in connection with plant equipment and other property, plant, and equipment and intangible assets for the expansion of its nationwide fiber network.

The bonds comprising the first tranche will be offered at face value from March 14 to 18, and will be listed on the Philippine Dealing & Exchange Corp. on March 25, according to the latest timetable submitted to the SEC.

. . . .”

We wish to inform the Exchange and the investing public that Converge Information and Technology Solutions, Inc. (the “Company”) has not received official confirmation from the SEC on the approval of the Corporation’s Registration Statement for its Php20 billion Debt Securities Program Shelf Registration.

We confirm that, as disclosed in the latest draft of the preliminary prospectus submitted to the SEC last March 21, 2022, the estimate net proceeds from the offer is at Php9.87 billion, assuming full oversubscription is exercised, and that the net proceeds will be mainly used to fund capital expenditures. This is in connection with the expansion of the Company’s nationwide fiber network, including to new markets in Visayas and Mindanao. Subject to determination by management of the appropriate amounts, taking into consideration the abovementioned factors, a portion of the proceeds may be allocated for general corporate purposes.

Lastly, we will need to wait for the receipt of the official confirmation from the SEC before the official offer period and listing date can be determined.

Rest assured that the Company will make the necessary disclosures once we receive the pre-effective letter from the SEC.