October 19, 2010
RFM issues US$34.58 million floating rate notes for expansion
Philippine conglomerate RFM Corporation will borrow PHP1.5 billion (US$34.58 million) in fresh capital from several banks and financial institutions to fund expansion activities.
In a disclosure, the food firm said it had executed late last week a Floating Rate Notes Facility Agreement with Banco de Oro Unibank Inc., Security Bank Corporation, Bank of the Philippine Islands, Philippine Veterans Bank, Philippine Bank of Communications, Maybank Philippines Incorporated, BDO Private Bank Incorporated and Wealth Advisory and Trust Group.
BDO Capital & Investment Corp. and SB Capital Investment Corp. are the transaction's joint lead arrangers while Security Bank Corp.'s Trust division will be the facility agent, registrar and paying agent.
Earlier this year, the company announced that it would spend PHP1.2 billion (US$27.66 million) for the expansion of its current businesses.
This will be spent to beef up the company's production capacity in preparation for the expected increase in consumer demand this year.
RFM earlier its net income for the first six months surged 193 percent from the same period last year to PHP395 million (US$9.10 million).
The income was on the back of first-half net sales worth PHP4.2 billion (US$96.84 million)--up by 10.2 percent from that of the past year.
