LISTED port operator International Container Terminal Services, Inc. (ICTSI) announced on Monday an offer to buy back up to $775-million senior guaranteed perpetual securities of its subsidiary Royal Capital B.V., as part of its strategy to manage the profile of its existing financings.
In a stock exchange filing, ICTSI said its board of directors approved on Monday a purchase offer by Royal Capital to holders of “outstanding aggregate $400-million 5.875% senior guaranteed perpetual capital securities.”
ICTSI’s board also approved Royal Capital’s tender offer to holders of “aggregate $375-million 4.875% senior guaranteed perpetual capital securities.”
Royal Capital is a Netherlands-based company that operates as a special purpose entity of ICTSI. A special purpose entity is formed to isolate financial risk.
At the same time, the board approved the issuance by ICTSI Treasury B.V., another ICTSI subsidiary, of new senior notes guaranteed by the Philippine-listed port operator. ICTSI Treasury is another special purpose entity based in the Netherlands.
ICTSI appointed Citigroup Global Markets Ltd. and The Hongkong and Shanghai Banking Corp. Ltd. as joint lead managers for the new note offer.
They will also serve as dealer managers for the tender offer. Morrow Sodali Ltd. will serve as tender and information agent for the tender offer.
For the first nine months of the year, ICTSI’s net income attributable to equity holders was $316.4 million, a 73% increase over the $182.6 million earned in the same period last year.
The company attributed its growth to the improvement in trade activities during the period.
Its total revenues for the period hit $1.37 billion, a 24% increase from $1.1 billion previously.
ICTSI shares closed 1.44% higher at P190 apiece on Monday. — Arjay L. Balinbin
