Port operator International Container Terminal Services Inc. is raising $400 million from the issuance of senior perpetual capital bonds to fund capital expenditures and acquisitions.
The company led by businessman Enrique Razon Jr. said unit Royal Capital BV on Jan. 10 successfully priced a $350-million offering of senior guaranteed perpetual capital securities, guaranteed by ICTSI and structured to constitute equity.
It said ICTSI on Jan. 11 re-opened the books for an additional tap of $50 million thatwere priced at par to yield 5.875 percent per annum, bringing the total offering to $400 million.
Royal Capital’s board approved the guarantee of the additional securities which would be consolidated and form a single series with the $350-million, 5.875 percent senior guaranteed perpetual capital securities.
The proceeds of the bonds would be used to finance acquisitions and capex and for general corporate purposes, the company said.
“We are pleased with the success of the new issue of fixed-for-life senior perpetual securities. This transaction is part of our strategy of prudent and value accretive capital and risk management, while further extending the duration of our liabilities to be in line with our concessionary assets. It similarly provides additional liquidity in the context of ICTSI’s growth strategy,” ICTSI senior vice president and chief financial officer Rafael Consing Jr. said.
ICTSI tapped Citigroup Global Markets Ltd., Credit Suisse (Hong Kong) Ltd. and Standard Chartered Bank as joint lead managers for the new securities offer.
ICTSI earlier reported a net income of $149.3 million in January to September, up 5 percent from $141.9 million in the same period last year.
Excluding the one-time gain on the termination of the sub-concession agreement in Nigeria, consolidated net income attributable to equity holders would have been flat in the first nine months of 2017.
Gross revenues from port operations in the nine-month period increased 10 percent to $918.3 million from $835.0 million reported in the same period in 2016.
