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Friday, March 29, 2024

ICTSI raises $400m from sale of 10-year notes amid strong international demand

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Port operator International Container Terminal Services Inc. said Tuesday it raised $400 million to refinance and extend debt maturity and support expansion plans. 

The company led by businessman Enrique Razon said it sold $400-million, 10-year senior unsecured notes in its return to the debt market after completing a fixed-for-life perpetual capital securities transaction in January 2018.

The notes were priced with a fixed coupon of 4.750 percent per annum, payable on a semi-annual basis and a price of 99.607 to yield 4.800 percent. 

“This transaction is in line with our focus on prudent balance sheet management, which allows us to sustainably execute on our business strategies and increase ICTSI’s resilience particularly in this time of economic disruption,” ICTSI senior vice president and chief financial officer Rafael Consing said. 

The company said net proceeds from the issuance would be used to refinance and extend the maturity of ICTSI’s liabilities and for general corporate purposes.

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Citigroup, Credit Suisse and J.P. Morgan acted as joint lead managers and joint bookrunners for the offering.

ICTSI said the offering attracted strong demand from a wide array of accounts and pricing was compressed 45 basis points from initial marketing to final pricing levels. Demand allocable at final pricing was in excess of $1.85 billion from over 111 accounts, equivalent to order book oversubscription of over 4.6 times.  

ICTSI said the notes were widely distributed with fund and asset managers allocated about 65 percent of the offering; banks and private banks, 21 percent; and insurance and pension funds, 14 percent.

By geography, Asia, EMEA (Europe, the Middle East and Africa) and offshore US investors took about  80 percent, 19 percent and 1 percent, respectively.

ICTSI is currently involved in 31 container terminal facilities in 18 countries worldwide, with a focus on origin and destination and gateway ports in emerging and frontier markets. 

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