MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) has successfully priced a $400 million offering of 10-year senior unsecured notes.
In a statement, ICTSI said the offering has attracted strong demand from a wide array of accounts and pricing was compressed 45 basis points from initial marketing to final pricing levels.
“ICTSI’s global, diversified footprint and uniquely focused origin and destination portfolio were central to investor appeal,” the company said.
ICTSI said the notes were priced with a fixed coupon of 4.75 percent per annum, payable on a semi-annual basis and a price of 99.607 to yield 4.80 percent per annum.
It said demand at final pricing was in excess of $1.85 billion from over 111 accounts, equivalent to orderbook oversubscription of over 4.6x.
The notes were widely distributed with fund and asset managers recieving approximately 65 percent of the offering, banks and private banks with 21 percent, and insurance and pension funds with 14 percent.
“Upon issuance, the notes would constitute direct, unconditional, unsubordinated, and unsecured obligations of the issuer, pari passu without any preference among themselves and with all other outstanding unsecured and unsubordinated obligations of the issuer,” the company said.
The offering will mark ICTSI’s return to the senior unsecured notes market, having last completed a fixed-for-life perpetual capital securities transaction in January 2018.
Net proceeds from the issue of the notes will be used to refinance and extend the maturity of ICTSI’s liabilities and for general corporate purposes.
ICTSI said the transaction furthers the firm’s prudent balance sheet management and capital structure optimization initiatives in response to the economic disruption from the coronavirus disease 2019 or COVID-19 pandemic.
The company said it moved swiftly to capitalize on the conducive market backdrop and pent-up investor demand to be the first Philippine corporate issuer to access the international bond markets following the volatility from the COVID-19 pandemic and the drop in oil prices.
Upon issuance, the notes will also be the first corporate bond offering from the Philippines to feature investment grade terms with no financial or leverage covenants, ICTSI said.