INTERNATIONAL Container Terminal Services, Inc. (ICTSI) announced on Thursday that its subsidiary Royal Capital B.V. was extending to July 29 the period for its tender offer.
In a statement, ICTSI said there was a total nominal principal amount of $65,483,000 of perpetual securities callable in May 2021 submitted by securityholders in the tender offer.
Royal Capital offered a price of $1,007.50 per $1,000 in principal amount of perpetual securities to security holders, ICTSI said.
On July 6, ICTSI announced that Royal Capital was offering cash to the holders of its outstanding $450-million 5.5% senior guaranteed perpetual capital securities. The tender offer ended on July 14 at 5:00 p.m., Central European summer time.
At the same time, Royal Capital had successfully priced a $300-billion offering of senior perpetual capital securities, guaranteed by ICTSI.
ICTSI said the new perpetual securities “confer a right to receive distributions at an initial rate of 5.00% per annum and were priced at 98.979% with a reoffer yield of 5.20% per annum.”
“The new perpetual securities shall rank pari passu with all other outstanding unsubordinated obligations of the issuer, who will have the right to redeem the new perpetual securities on any day from (and including) February 5, 2026 (the first call date) to (and including) May 5, 2026 (the step up date), or on any semi-annual distribution payment date thereafter. The rate of distribution for the new perpetual securities will be reset on the step up date and every five years thereafter,” it added.
ICTSI also reported that the new perpetual securities were widely distributed among fund managers or asset managers, private banks, insurance companies and banks or pension funds, accounting for 64%, 18%, 12% and 6% respectively.
It said that Asia accounted for 91%, while the remaining 9% was allocated to Europe.
“The new perpetual securities benefitted from robust investor demand, allowing ICTSI to implement its largest-ever senior perpetual capital securities tightening of 42.5 bps from initial price guidance of 5.625% area,” the company said.
“This transaction also marks ICTSI’s first perpetual securities issuance since January 2018. The concurrent tender offer was an investor-friendly offering that facilitated investors who wished to roll over to the new perpetual securities whilst improving carry efficiency for ICTSI,” it added. — Arjay L. Balinbin