ICTSI unit Royal Capital to make tender offer for debt management

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Royal Capital B.V., a subsidiary of listed firm International Container Terminal Services Inc., is conducting a tender offer of its existing debt securities to manage its debt maturity profile.

In a disclosure to the Philippine Stock Exchange, ICTSI said its board of directors approved of its unit Royal Capital inviting the security holders of its previously issued $300-million and $450-million debt securities and other NC19 Securities to tender their securities as the ICTSI group’s “strategy to manage the maturity profile of its existing debt obligations.”

The debt securities come in 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.

ICTSI said Royal Capital would purchase back the debt securities with cash of “up to $400 million aggregate principal amount of the existing securities,” which is still subject to a) the pricing of the new securities to be offered, and b) the signing of a subscription agreement among Royal Capital, ICTSI, and the managers appointed for the new offer.


ICTSI said the new securities to be offered by Royal Capital would be another set of senior perpetual securities guaranteed by the listed firm, of which the amount, tranche, rate, and other terms will be determined within the month.

The end of the tender offer run will be on October 12, the results of which will be announced a day after. The new securities on the other hand will be announced on October 6, while the pricing will be 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.

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