LISTED International Container Terminal Services Inc. (ICTSI) has set a minimum yield of 4.875 percent per year on the new securities that will be issued by its unit Royal Capital B.V., the company said on Wednesday.
The bond offer is part of the company’s debt management initiatives.
In a disclosure to the Philippine Stock Exchange on Wednesday, ICTSI said it has approved a minimum yield of 4.875 percent per annum for the new securities offer through subsidiary Royal Capital B.V., which is still subject to finalization of terms and conditions.
Earlier this week, ICTSI said unit Royal Capital will also conduct a tender offer by exercising the call option on two existing securities as a part of the group’s strategy “to manage the maturity profile of its existing debt obligations.”
“The new securities will provide for redemption by Royal Capital at its option beginning on May 5, 2024,” the disclosure read.
“The tender offer will expire as of 5:00 P.M. CEST [Central European Summer Time] on October 12, unless extended. In accordance with the tender offer memorandum, ICTSI expects to announce the final results of the tender offer, and the pricing of the new securities on or about October 13,” it added.
The existing debt securities are in the form of senior guaranteed perpetual capital securities, one of which is worth $300 million with a 6.250 percent yearly rate, while the other amounts to $450 million having a 5.5 percent per annum rate. The tender offer will run on October 12, the results of which will be announced a day after.
ICTSI said the new securities to be issued will be senior perpetual securities guaranteed by ICTSI itself, which will be priced on October 13.
Appointed joint lead managers and dealer managers for the new securities offer were Citigroup Global Markets Limited (Citigroup), The Hong Kong and Shanghai Banking Corporation Limited (HSBC) and Standard Chartered Bank (SCB).
D.F. King Ltd. will serve as the tender and information agent for the tender offer of existing debt securities.