ICTSI sets swap of 2020 bonds

MANILA, Philippines - Listed International Container Terminal Services Inc. (ICTSI) of gaming and port magnate Enrique Razon has approved the minimum yield for the new bonds due 2025 to be swapped with the 2020 bonds under a $450 million exchange program.

ICTSI treasury head Arthur Tabuena informed the Philippine Stock Exchange (PSE) that the port operator has approved a minimum yield of 5.875 percent on the 2025 notes that could be exchanged with 7.375 percent senior notes due 2020.

Last Aug. 15, ICTSI through ICTSI Treasury BV launched a $450 million note exchange program after jacking up the size of its medium-term note program to $1 billion instead of $750 million.

The port operator offered to redeem $450 million worth of 2020 notes with a yield of 7.375 percent with new 2025 notes  to stretch the maturity of the company’s debt profile.

“Pursuant to the continuing disclosure requirements of the Exchange, ICTSI is now announcing that it has approved a minimum yield of 5.875 percent on the 2025 notes,” Tabuena said.

The new 2025 notes would be priced on Sept. 11 after a bondholder meeting to confirm the votes on certain modification to the terms and conditions of the existing 2020 notes.

ICTSI has tapped Citigroup Global Markets Ltd and Credit Suisse Securities (Europe) Ltd to act as joint deal managers for the exchange program.

Last January, ICTSI raised $400 million of the $750 million medium term note program. It initially raised $300 million in the first tranche and another $100 million in the second tranche.

ICTSI Treasury BV has launched a $750 million medium note program to manage its debt portfolio and at the same time bankroll ongoing expansion program in the country and overseas.

ICTSI is in the business of acquiring, developing, managing and operating container ports and terminals worldwide. Established in December 1987 in the Philippines, ICTSI has become a leading operator, innovator and pioneer in its field.

ICTSI is acquiring new terminal concessions in Asia, Australia, the Indian Subcontinent, the Middle East, Africa, Europe and the Americas.

Earnings of ICTSI jumped 23 percent to $87.4 million in the first half of the year from $71.1 million in the same period last year, while revenue from port operations jumped 20 percent to $413.7 million during the period from $345 million a year ago due to strong growth and margin improvement in certain key terminals and the contribution of the new terminal in Karachi Pakistan.