ICTSI subsidiary to offer $200-M perpetual securities

MANILA, Philippines - Royal Capital BV, a subsidiary of International Container Terminal Services Inc. (ICTSI), is set to offer $200 million worth of subordinated perpetual securities, proceeds of which will be used for the development of greenfield projects, potential acquisitions, and general corporate purposes.

The securities will have a distribution rate of 8.375 percent per annum, the distribution of which will be semi-annual, fixed for the first 10 years, subject to rate reset and step-up after year 10.

Rate reset is every five years from year 10 while call dates will be year five, 10 and every semi-annual distribution date thereafter.

The securities will be listed at the Singapore Exchange Securities Trading Ltd.

ICTSI, which earlier acquired a stake in Royal Capital BV, will guarantee the issuance, offer and sale by Royal Capital BV of the subordinated perpetual securities.

Earlier, ICTSI approved the appointment of Hongkong and Shanghai Banking Corp. Ltd. as the sole structuring adviser, and Citigroup Global Markets Ltd. and HSBC Ltd. as joint lead managers.

Also yesterday, ICTSI announced that it has inaugurated a two-story building housing the offices and workshops of the crane maintenance and anchorage operations of the Manila International Container Terminal (MICT).

“The new office gives our employees a comfortable place to work in that should boost their performance. This building replaces the old container office which had been of service for almost 20 years,” according to Christian Gonzalez, ICTSI vice president and MICT general manager. 

The Crane Maintenance Section (CMS) is responsible for the repair and maintenance of quay cranes and rubber tired gantries. The anchorage, meanwhile, is tasked for the breakbulk discharging of cargoes.

The facility located along the East Access Road also has a training room, dining area and locker rooms on the first floor, an office working area on the second floor and a roof deck.

ICTSI is a leading port management company involved in the operations and development of 23 marine terminals and port projects in 17 countries worldwide. The company was among the first international terminal operators to take its expertise overseas.

ICTSI’s net income for 2010 amounted to $98.3 million, or 79 percent higher than the $54.9 million the previous year.

It said recovery in global trade, higher revenues combined with a modest increase in cash operating expenses, lower effective tax rate for the period and a one-time gain on sale of non-core assets powered income.

Net income attributable to equity holders for the period reached $88.9 million last year, 62 percent higher than the same period in 2009.

Year-on-year, revenue from port operations grew 25 percent to $527.1 million from $421.7 million and earnings before interest, taxes, depreciation and amortization of $247.7 million were up 41 percent from the $175.7 million earned in 2009.

“2010 was a record year for ICTSI reflecting both the strong rebound in trade volumes as well as our continued focus on cost containment. We are well positioned for continued growth in the future,” ICTSI chairman and president Enrique Razon Jr. said.

ICTSI handled consolidated volume of 4,202,574 twenty-foot equivalent units (TEUs) in 2010, 18 percent higher compared with the 3,557,256 TEUs handled in 2009.