MANILA, Philippines - Listed International Container Terminal Services Inc. (ICTSI) of gaming and port magnate Enrique Razon Jr. is set to issue $75 million worth of notes as part of its $1 billion medium term note program to raise funds for its capital expenditures.
ICTSI treasury director Arthur Tabuena informed the Philippine Stock Exchange (PSE) that the company’s board of directors ratified and approved the issuance of additional notes by ICTSI Treasury B.V.
Tabuena said the new notes would be consolidated in the $207.5 million notes due 2025 issued by ICTSI Treasury BV last Sept. 17.
“These new notes will be consolidated and form a single series with the $207.5 million 5.875 percent guaranteed notes due 2025 issued on Sept. 17,†he added.
ICTSI vice president and treasurer Rafael Consing Jr. said the company has already issued $650 million of the note program launched early last year.
According to him, proceeds of the fund raising activity would be used to bankroll the company’s capital expenditures.
“The additional issuance would be used to partially fund our capex this year,†Consing said.
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.
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 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.
Last September, ICTSI issued another $207.5 million 12-year notes in exchange for shorter dated debt papers. The notes due 2025 with 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.
The port giant has allocated a lower budget of $310 million for its capital expenditures this year mainly for the development of four new terminals overseas.
ICTSI said the budget allocation for this year would be used for the completion of new container terminals in Mexico , Argentina , Honduras , and Democratic Republic of Congo.
The port operator said this year’s budget for capital expenditures does not include its share in the joint venture project with PSA International Pte Ltd. for the development of the container terminal in Buenaventura, Colombia worth $120 million.