PSE Circular for Brokers No. 1834-98

August 6, 1998 PSE CIRCULAR FOR BROKERS NO. 1834-98 CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. August 5, 1998 Date of Report (Date of earliest event reported) 2. SEC Identification Number 19073 3. BIR Tax Identification No. 350-000-288-698 4. FIRST PHILIPPINE HOLDINGS CORPORATION Exact name of registrant as specified in its charter 5. N/A Province, country or other jurisdiction of incorporation 6. [ ] (SEC Use Only) Industry Classification Code: 7. 6th Floor, Benpres Building, Meralco Avenue cor. Exchange Road, Pasig City Address of principal office 8. 2-631-8024 to 30 Registrant's telephone number including area code 9. N/A Former name of former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Class "A" Common Shares 242,912,631 shares Class "B" Common Shares 152,249,234 shares Total 395,161,865 shares Long Term Commercial Paper (LTCP) P2,000,000,000 11. Indicate the item numbers reported herein: Item No. 4 First Philippine Holdings Corporation completed yesterday, August 4, 1998, its private placement of US$90 million Convertible Notes. The Convertible Notes were privately placed to the J.P. Morgan Group, the AIG group and Benpres Holdings Corporation. Attached is a more detailed term sheet of the Convertible Notes. The proceeds will be used for equity investments in its subsidiaries primarily for First Gas Holdings Corporation. LexLib FIRST PHILIPPINE HOLDING CORPORATION By: (SGD.) ERNESTO B. RUFINO, JR. VP, Treasurer & Chief Finance Officer FIRST PHILIPPINE HOLDINGS CORPORATION TERMS AND CONDITIONS OF THE US$90 MILLION CONVERTIBLE NOTES PLACEMENT Tranche 1 Tranche 2 Issuer: First Philippine Holdings Corporation ("FPHC") Principal amount of A Notes: US$ 24 million A Notes: US$ 16 million convertible notes: B Notes: US$ 30 million B Notes: US$ 20 million Denominations of the US$ 100,000 each issued notes: Holders Benpres Holdings Corp. Benpres Holdings Corp. AIG Group: JP Morgan group: The AIG Infrastructure Fund LP JP Morgan International The AIG Infrastructure Fund II LP The Sixty Wall Street Fund LP AIA Co. (Bermuda) Ltd. Philamlife Subscribed amount Benpres: US$ 24 million Benpres: US$ 16 million of each holder: AIG Group: US$ 30 million JP Morgan Group: US$ 20 million Interest: 2.5% Zero per cent for years 1 to 4, and thereafter, 8.63% per annum Manner of interest payment: payable annually in arrears payable semi-annually in arrears Issue date: August 4, 1998 Maturity date: February 4, 2004 Conversion Price: A shares: PhP 14.86 A shares: PhP 12.92 B shares: PhP 30.80 B shares: PhP 26.78 Conversion period: October 5, 1998 to February 4, 2004 Redemption amount: At principal amount plus accrued and unpaid coupon Redemption period: February 4, 2004 Call option: Non-callable until end of year 4, Non-callable until end of year 3, thereafter at any time at par. thereafter at any time at par subject to 140% trigger.