ICTSI redeems $130-M notes before due date

Port operators International Container Terminal Services Inc. (ICTSI) said yesterday it has fully redeemed $130 million in convertible notes still due in 2004 using the proceeds from the sale last year of its foreign subsidiaries.

The redemption brought up ICTSI’s total note payments over the past several months to $171 million or approximately P8.6 billion representing the principal, the fixed coupon interest and the premium.

The company said the note settlement has put it in a stronger financial position as its debt-to-equity ratio was reduced from 3.5x to 0.5x while its debt load dropped from P11 billion as of end-2000 to about P2.5 billion.

The 1.75 percent convertible notes were issued to March 1997 and is due to mature in seven years, or 2004. Noteholders had the option to convert the notes into ICTSI shares prior to the due date, or redeem the notes at 135.75 percent of its principal amount from Jan. 12 to Feb. 11, 2002. Issued in $1,000 denominations, the notes were listed at the Luxembourg Stock Exchange.

ICTSI used most of the proceeds from the sale of its subsidiaries ICTSI International Holdings Corp. and Ensenada Cruiseport Village S.A. de C.V. to redeem to notes.

ICTSI, the operator of the Manila International Container Terminal (MICT), sold its 30 million founder shares in IIHC to Hong Kong-based Hutchison International Port Holdings (HPH) for $70.3 million.

IIHC operates eight container terminals in the six countries of Argentina, Mexico, Saudi Arabia, Pakistan, Tanzania and Thailand.

At the same time, wholly-owned subsidiary International Container Terminal Holdings Inc. (ICTHI) sold to HPH its 900,000 shares in Langer Holdings Ltd. which owns the Ensenada Cruiseport Village, a Mexican cruise terminal, gaining another $30 million for ICTSI.

In addition, ICTSI took in $60 million as gain from the put and call option granted by ICTHI to HPH over ICTSI’s 43.2 million preferred B shares in IIHC.

With the sale, ICTSI will concentrate on the operations of its flagship port, MICT, along with the newly-acquired 30-year concession in the Port of Suape in northern Brazil.

ICTSI reported a seven percent gain in revenues to P3.23 billion last year as its net profit soared to P3.28 billion from only P59.44 million the previous year largely due to the one-time gain from the sale of its foreign terminals. – Conrado Diaz Jr.