International Container Terminal Services Inc. (ICTSI) has signed an inaugural Loan Facility Program and a $350-million syndicated revolving credit facility with a large group of international and domestic banks, the company reported in a disclosure to the local stock market.
ICTSI’s Loan Facility Program is the first such structure established by an Asian corporate entity. The Program serves as a master platform from which other loan type financing instruments can be issued as required. It also serves to harmonize the covenants, undertakings and other generic terms across the capital structure of ICTSI, in particular with its existing Euro Medium Term Note program.
The positive reception to the innovative structure highlights the growing international market appetite for assets from the Philippines, and further establishes the credentials of ICTSI’s management in bringing pioneering initiatives to the capital markets, the company said.
In its disclosure to the Philippine Stocks Exchange the company said that its Board of Directors had approved the first loan facility entered under the Program with ICTSI Global Finance B.V. as the borrower and International Container Terminal Services Inc. as the guarantor. The loan facility is a revolving credit facility with a principal amount of $350 million and a tenor of 5 years from signing date.
“The Program and the first revolving credit facility were arranged by Australia and New Zealand (ANZ) Banking Group Limited and Standard Chartered Bank, with The Bank of New York Mellon, Singapore Branch acting as trustee for the Program and Standard Chartered Bank [Hong Kong] Ltd. acting as facility agent for the revolving facility,” the company explained.
Commenting on the innovative structure and its acceptance by the market, Rafael Consing, ICTSI Vice President & Treasurer, said, “We are very pleased with the result of the syndication. This transaction highlights the core attributes most suitable to our funding needs – streamlined execution, reduced negative interest carry, incurrence-based covenant regime and a diversified funding base.”
The Revolving Facility is the first tap from the Program. The funds available under the program will be used for strategic investments and acquisitions in addition to general corporate purposes.
The facility was originally launched at $250 million, and was subsequently increased to $350 million on the back of strong demand from banks from the Asia-Pacific syndicated loan market. Total order book was at $825 million, representing a 3.34 times oversubscription with interest from 24 domestic, regional and international banks. The success of the transaction is a strong testament of the capital market’s confidence in the credit strength of ICTSI and is recognition of the deal structure, Consing said.
For his part, Panadda Manoleehakul, ANZ CEO for Philippines and Thailand, said that, “At a final size of $350 million and an oversubscription of 3.34 times the original deal size, this transaction is the largest USD Philippine loan in the year to date and one of the most successful syndicated loans ever. The first-of-a-kind Loan Facility Program also breaks new ground in syndication loan documentation in Asia.”