International Container Terminal Services completes $350-M tender offer

MANILA, Philippines - A unit of port giant International Container Terminal Services Inc. (ICTSI) has completed a tender offer involving $350 million worth of outstanding debt launched last Jan. 12.

ICTSI treasury director Arthur Tabuena informed the Philippine Stock Exchange (PSE) that $229.841 million worth of securities of ICTSI’s Royal Capital BV were tendered during the offer period that ended last Jan. 21.

“Security holders holding an aggregate principal amount $229.84 million tendered their existing securities on or prior to the expiration deadline at a tender price of $1,076.25 per $1,000 in principal amount of the existing securities,” Tabuena said.

He pointed out that holders who tendered their existing securities for purchase would be paid the tender price on Jan. 29.

Citigroup Global Markets Ltd. and The Hong Kong and Shanghai Banking Corp. Ltd. acted as dealer managers while Citibank N.A. acted as tender and information agent for the tender offer.

ICTSI invited holders of Royal Capital’s outstanding $350 million subordinated guaranteed perpetual capital securities to tender any and all of their existing securities for purchase for cash.

ICTSI develops, manages and operates container terminals in gateway ports in over 20 countries across the Asia-Pacific, the Americas, Europe and the Middle East and Africa.

Earnings of ICTSI climbed five percent to $142.3 million in the first nine months of last year from $135.7 million in the same period in 2013 on the back of higher volume handled by its domestic and international ports.

Gross revenues from port operations jumped 25 percent to $779.2 million from $624.7 million amid the 17 percent increase in handled consolidated volume to 5.41 million twenty-foot equivalent units (TEUs) in the first nine months of last year from 4.63 million TEUs in the same period in 2013 with the launching of new terminals in Manzanillo, Mexico (CMSA) and Puerto Cortes, Honduras (OPC).

ICTSI is spending P3 billion to expand its flagship Manila International Container Terminal (MICT) and to put up an inland container depot in Laguna.

ICTSI has allocated P1.6 billion to bankroll the first phase of the expansion project of MICT through the development of six hectares of new yard space. The new yard is part of the company’s expansion project for the MICT aimed at immediately addressing growing volumes at the Port of Manila.

Likewise, ICTSI is spending another P1.4 billion to develop a 21-hectare inland container depot.