ICTSI raises $300 million from securities issue

MANILA, Philippines – Port operator International Container Terminal Services Inc. (ICTSI) has raised $300 million from the issuance of senior perpetual capital securities callable in May 2026.

Proceeds will be used for refinancing and general corporate purposes including funding of a tender offer for certain existing senior guaranteed perpetual capital securities.

ICTSI said the issuance garnered significant investor demand and effectively extended the company’s debt maturity profile.

The new perpetual securities confer a right to receive distributions at an initial rate of five percent per annum and were priced at 98.98 percent with a reoffer yield of 5.20 percent per annum.

ICTSI said the new perpetual securities benefitted from robust investor demand, with the transaction marking the company’s first perpetual securities issuance since January 2018.

The securities were widely distributed with fund managers/asset managers accounting for 64 percent, private banks at 18 percent, insurance companies at 12 percent and banks/pension funds at six percent.

By geography, Asia accounted for 91 percent while Europe were allocated the remaining nine percent.

“ICTSI’s overall financing and liability management exercise is one of three levers that we focused on in response to the ongoing global pandemic, the other two being the tactical delay in capital expenditures and sustainable cost reduction,” ICTSI senior vice president and chief financial officer Rafael Consing said.

“This exercise achieved our objectives of reducing capital cost, eliminating call redemption risk in 2021, and further enhancing the strength of ICTSI’s balance sheet,” he added.