ICTSI to issue $207.5-M notes

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) is set to issue $207.5 million 12-year notes in exchange for shorter dated debt papers.

ICTSI treasury head Arthur Tabuena informed the Philippine Stock Exchange (PSE) that the port operator’s Board of Directors ratified and approved the final terms and conditions of the new notes due 2025.

Tabuena said the new notes worth $207.5 million carrying a fixed yield of 5.875 percent per annum would be exchanged for such aggregate amount of ICTSI’s 7.375 percent senior notes due 2020.

Last Aug. 15, ICTSI through ICTSI Treasury BV launched a $450 million note exchange program after raising the size of its medium-term note program to $1 billion from $750 million to manage its debt portfolio and at the same time bankroll ongoing expansion program in the country and overseas.

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

ICTSI has tapped Citigroup Global Markets Ltd and Credit Suisse Securities (Europe) Ltd to act as joint dealer 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 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 currently pursuing an active program to acquire 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 from $345 million due to strong growth and margin improvement in certain key terminals and the contribution of the new terminal in Karachi, Pakistan.

ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU per year range.

ICTSI is a leading port management company involved in the operations and development of 27 marine terminals and port projects in 19 countries worldwide.  The company was among the first international terminal operators to take its expertise overseas.