Metro Pacific Approval for Financing of Acquisition (Maynilad Water Services, Inc.)

METRO PACIFIC INVESTMENTS

09 January 2007
PHILIPPINE STOCK EXCHANGE
Listings & Disclosure Group
4/F PSE Center, Exchange Road
Ortigas Center, Pasig City

Attention:
Ms. Jurisita M. Quintos
Senior Vice President
Operations Group

Attached is SEC Form 17-C which indicates various approvals by the Metro Pacific Investments Corporation (MPIC) (PSE: MPI) Board of Directors which provide for the full financing in connection with the acquisition of a majority interest in Maynilad Water Services Inc., as well as the anticipated capital expenditure and operating expenditure requirements for that acquisition.


Thank you.

Very truly yours,
DAVID C. NUGENT
Vice President
Media & Corporate Communications

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SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. 09 January 2007
Date of Report (Date of earliest event reported)

2. SEC Identification Number CS200604494

3. BIR Tax Identification No. 244-520-457-000

4. METRO PACIFIC INVESTMENTS CORPORATION
Exact name of issuer as specified in its charter

5. METRO MANILA, PHILIPPINES 6. (SEC Use Only)
Province, country or other jurisdiction of incorporation
Industry Classification Code:

7. 10th Floor, MGO BUILDING, LEGAZPI COR. DELA ROSA STREETS, LEGAZPI VILLAGE, MAKATI CITY, METRO MANILA, PHILIPPINES ........................
Address of principal office Postal Code

8. (632) 888-0888
Issuer's telephone number, including area code

9. NA
Former name or former address, if changed since last report

10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA

Title of Each Class

Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding

COMMON SHARES OF STOCK
1,119,767,300

SUBSCRIPTION WARRANTS
145,700,656

COMMON SHARES UNDERLYING THE SUBSCRIPTION WARRANTS
145,700,656

11. Indicate the item numbers reported herein:

Item 9. Other Events

At the Special Meeting of the Board of Directors of the Registrant held late in the afternoon of January 5, 2007 – Friday, the Board authorized Metro Pacific Investments Corporation (“Registrant”) to do the following:

[1] to negotiate and secure loans from certain Ashmore Funds and Metro Pacific Holdings, Inc. (“MPHI”) in the aggregate amount of US$62,000,000.00. The aforesaid loans are convertible to such number of common shares of the Registrant as may be agreed upon by the Registrant, said Ashmore Funds and MPHI in an investment agreement to be entered among them, at a subscription price of One Peso (PhP 1.00) per subscription share;

[2] to procure a Stand By Letter of Credit (“SLBC”) from JP Morgan Chase Bank N.A. (“JP Morgan”) in the amount of US$240,000,000.00 for the purpose of partially securing the obligations of the Registrant to contribute cash to Maynilad Water Services, Inc. pursuant to an Assignment and Assumption Agreement dated 27 December 2006 with the Metropolitan Waterworks and Sewerage System. To secure said SBLC issued by JP Morgan, the Board likewise authorized the Registrant to enter into an Omnibus Security and Credit Agreement with Banco de Oro (“BDO”) and Development Bank of the Philippines (“DBP”) whereby BDO and DBP shall issue Standby Letter/s of Credit in the aggregate amount of US Dollars: Two Hundred Forty Million (US$240,000,000.00) in favor of JP Morgan; and

[3] to execute an Omnibus Second-ranking Security Agreement (“Security Agreement”), including the Omnibus Agreement in which the Security Agreement is contained, both in relation to a term loan facility of US$ 192,000,000.00 to be granted by the Ashmore Funds named therein and First Pacific Company Limited in favor of the Registrant’s 50% subsidiary, DMCI-MPIC Water Company.

SIGNATURES

Pursuant to the requirements of the Securities Regulation Code, the Issuer has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

METRO PACIFIC INVESTMENTS CORPORATION 09 January 2007
MPIC or Issuer Date

.............................................................
DAVID C. NUGENT
Vice-President

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Original Document: http://www.mpic.com.ph/uploads/2007/07/mpic-bod-approvals.pdf
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