ICTSI to issue new notes

MANILA, Philippines - Port giant International Container Terminal Services Inc. (ICTSI) is set to issue about $117-million debt papers as part of the company’s $1-billion medium term note program to better manage its liabilities.

ICSTI treasury head Arthur Tabuena said in a disclosure to the Philippine Stock Exchange (PSE) that the company’s Board of Directors approved the final terms and conditions of the 5.875-percent notes to be issued by ICTSI.

The senior unsecured notes due 2025 worth $117.5 milion would be issued under the $1-billion Medium Term Note Program of ICTSI Treasury B.V. and would form a single series with the aggregate $282.5 million 5.875-percent guaranteed notes due 2025 issued in September 2013 and April 2014.

Tabuena said the notes are prices at 102.625 and would carry a yield of 5.875-percent per annum payable semi-annually.

ICTSI has tapped Hong Kong and Shanghai Banking Corp. Ltd. and Citigroup Global Markets Ltd. as joint dealer managers, joint book runners and joint lead managers.

Likewise, the board of the port operator owned by businessman Enrique Razon has made an offer to existing holders of $271.11 million 7.375-percent senior notes due 2020 to exchange their notes for new 2025 notes.

Tabuena said the old notes would carry an exchange price of 114.625.

He added that ICTSI and ICTSI Treasury B.V. signed the relevant pricing supplement in connection with the issuance of the 2025 Notes as well as the Exchange Agreements with the 2020 noteholders.

According to Tabuena, the 2020 notes exchanged by the 2020 noteholders for 2025 notes would be cancelled and accordingly delisted from the SGX-ST.

Of the total $1 billion, the ICTSI unit has already issued a little over $680 million over the past few years.

ICTSI develops, manages and operates container terminals in gateway ports in over 20 countries across the Asia-Pacific, the Americas, Europe and the Middle East, and Africa.

Earnings of ICTSI climbed five percent to $142.3 million in the first nine months of last year from $135.7 million in the same period in 2013 on the back of higher volume handled by its domestic and international ports.

Gross revenues from port operations jumped 25 percent to $779.2 million from $624.7 million amid the 17 percent increase in handled consolidated volume to 5.41 million twenty-foot equivalent units (TEUs) in the first nine months of last year from 4.63 million TEUs in the same period in 2013 with the launching of new terminals in Manzanillo, Mexico (CMSA) and Puerto Cortes, Honduras (OPC).