ICTSI unit to issue securities to raise funds for capex
A unit of International Container Terminal Services Inc. (ICTSI) is planning to issue securities to raise funds to finance acquisitions and capital expenditures.
In a disclosure to the Philippine Stock Exchange, ICTSI said its board of directors confirmed, ratified and approved the issuance by Royal Capital B.V. of new senior perpetual securities guaranteed by ICTSI.
“This is an opportunistic new issue of senior perpetual securities, targeting minimum benchmark size. Use of proceeds are to finance acquisitions and capital expenditures, and to term out liabilities,” Rafael Consing Jr., ICTSI senior vice president, chief financial officer and compliance officer said in a text message.
According to ICTSI, the final terms and conditions of the new securities offer, including the issue amount and distribution rate, would be determined and approved by the respective boards of directors in the coming weeks.
ICTSI also said it has appointed Citigroup Global Markets Ltd., Credit Suisse (Hong Kong) Ltd. and Standard Chartered Bank as joint lead managers for the new securities offer.
It has also tapped Citicorp International Ltd. as trustee, Citibank, N.A., London Branch as principal paying agent and transfer agent and Citigroup Global Markets Deutschland AG as registrar.
Earlier, ICTSI said it is allocating $25 million as additional working capital requirements for expansion projects this year.
In particular, the amount would be used for projects such as construction of Berth 7 at the Manila International Container Terminal, expansion of the Port of Manzanillo in Mexico, expansion of Puerto Cortés in the Republic of Honduras and expansion of Port of Umm Qasr in Iraq.
Established in 1988 in Manila, ICTSI is involved in the business of port development, management and operations.
Its portfolio of terminals and projects spans developed and emerging market economies in the Asia-Pacific, the Americas, and Europe, the Middle East and Africa.