P15B boosts ICTSI warchest
The debt issue is guaranteed by ICTSI and was structured to constitute equity under international financial reporting standards
Global port operator International Container Terminal Services Inc. (ICTSI) raised $300 million (approximately P15 billion) from perpetual securities offer issued through its Dutch special purpose entity unit.
The debt issue, which is the first since January 2018, will be callable in May 2026 and has garnered significant investor demand and effectively extended their debt maturity profile.
In addition, ICTSI said it also embarked on a liability management exercise which further strengthened its capital structure while realizing cost savings.
ICTSI said proceeds from the offer will be used for refinancing of debt papers and for general corporate purposes.
The debt issue is guaranteed by ICTSI and was structured to constitute equity under international financial reporting standards and represent ICTSI’s fifth successful perpetual securities issuance.
Demand high for debt papers
The notes confer a right to receive distributions at an initial rate of five percent per annum and were priced at 98.979 percent with a reoffer yield of 5.2 percent per annum.
"The debt papers shall rank pari passu with all other outstanding unsubordinated obligations of the issuer, who will have the right to redeem the securities on any day from 5 February 2026 or on any semi-annual distribution payment date thereafter.
ICTSI's securities were widely distributed with fund and asset managers, private banks, insurance companies and banks/ pension funds accounting for 64 percent, 18 percent, 12 percent and six percent respectively.
By geography, Asia accounted for 91 percent while Europe was allocated the remaining 9 percent.
“Robust investor demand, allowed ICTSI to implement its largest-ever senior perpetual capital securities tightening of 42.5 basis points (bps) from initial price guidance of 5.625 percent area,” the company said in a statement.
ICTSI senior vice president and chief financial officer Rafael Consing remarked, “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.”