Megawide Construction Corp. said it has restructured its debt covering the development of the Cebu Mactan International Airport.
The company said unit GMR Megawide Cebu Airport Corp. (GMCAC), has come to an agreement with lenders to amend the original schedule of the 15-year, P23.9- billion project financing for development and management of the airport for 25 years.
“Practically in the next three years, GMCAC will be able to preserve P4.5 billion in cash, initially earmarked for principal debt servicing, and utilize for its operations while regular travel remains contained due to the coronavirus scare. In turn, this will be amortized throughout the life of the loan, with bulk of payments scheduled towards 2027-29,” Megawide said in a statement.
BDO Capital & Investment Corp. served as financial advisor for the transaction.
“This transaction will help our long-time partner, Megawide and its airport subsidiary, recover from the ill effects of the crisis,” said Ed Francisco, BDO Capital president.
