ICTSI to raise $400-M from perpetual notes issue


LISTED International Container Terminal Services Inc. (ICTSI) announced on Thursday that it was raising $400 million from the issuance of senior perpetual capital securities to fund capital expenditure requirements and acquisitions and for general corporate purposes.

The securities are being issued by its subsidiary Royal Capital BV and guaranteed by ICTSI.

“We report to you that the Board of Directors of the Company, in its meeting held earlier today approved its guarantee of additional senior perpetual capital securities (“Additional Securities”) in the aggregate nominal amount of up to U.S.$50,000,000 which shall be consolidated and form a single series with the U.S.$350,000,000 5.875 per cent senior guaranteed perpetual capital securities initially offered on 10 January 2018,” ICTSI said in a disclosure to the Philippine Stock Exchange.

In a separate disclosure on the same day, it said that its board, in a meeting held on Wednesday, also approved the principal terms and conditions of the New Securities Offer January 10, 2018.

The perpetual notes are callable on 5 May 2022 and any distribution payment date after the first call date. The distribution rate is 5.875 percent per annum, payable semi-annually in arrears on 5 May and 5 November of each year.

In a separate statement, ICTSI said this issuance represents the group’s first fixed-for-life notes.
Fixed-for-life perpetual issuance signifies no step-up and reset deal to its rates.

“We are pleased with the success of the new issue of fixed-for-life senior perpetual securities. This transaction is part of our strategy of prudent and value accretive capital and risk management, while further extending the duration of our liabilities to be in line with our concessionary assets. It similarly provides additional liquidity in the context of ICTSI’s growth strategy,” said Rafael Consing, Jr., ICTSI senior vice president and chief financial officer.

The issuance will be listed on the Singapore Exchange Limited. Citigroup Global Markets Limited, Credit Suisse (Hong Kong) Limited and Standard Chartered Bank will act as joint lead managers for this issuance.

ICTSI focuses on the operation, management, development and acquisition of container terminals.

The company posted a 5 percent increase in profit attributable to equity holders in the first nine months of 2017, boosted by its core operating businesses. Revenue for the period rose 11 percent to $314.6 million from $284.2 million recorded in the same period in 2016.


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