ICTSI to raise $150M from bond sale to boost capital

INTERNATIONAL Container Terminal Services Inc. (ICTSI) on Tuesday approved the terms of its subsidiary’s offering of subordinated perpetual capital securities.

In a disclosure to the Philippine Stock Exchange, the Razon-led port operator said that Royal Capital B.V. will raise $150 million from the sale of subordinated perpetual capital securities with an issue price of 98.375 percent.

The offering will be consolidated with the $200 million subordinated guaranteed perpetual capital securities issued in May.

ICTSI will guarantee Royal Capital’s securities offering. Hongkong and Shanghai Banking Corp. Limited and Citigroup Global Markets Limited were tapped as joint lead managers of the offering.

The port operator earlier said that proceeds will be earmarked for the development of greenfield projects, potential acquisitions and general corporate purposes.

Late last month, the ICTSI board had approved a $21-million capital expenditure program that would finance domestic expansion projects as well as investment in foreign ports next year.

ICTSI earlier said its net income increased 35 percent to $41.4 million in the July to September period from $30.7 million in the same period last year.

In the first nine months, ICTSI posted a net income of $ 101.4 million, up 39 percent over the $ 73 million earned last year, because of “the upsurge in revenues, lower effective tax rate for the period and a one- time gain on sale of non- core assets.”

ICTSI is a leading port management company involved in the operations and development of 22 marine terminals and port projects in 17 countries worldwide.