Port operator announces successful tender offer of perpetual securities

ICTSI's-successful-tender-offer

Port operator International Container Terminal Services Inc. (ICTSI) announced a successful tender offer of senior guaranteed perpetual securities of subsidiary Royal Capital B.V.

ICTSI, in a stock exchange filing, said securityholders of an aggregate principal amount of $183.76 million of the 5.875 percent perpetual securities and $85.22 million of the 4.875 percent perpetual securities submitted valid tender instructions prior to the expiration deadline.

Royal Capital B.V. accepted all validly tendered perpetual securities in full at the price of $1,024 per $1,000 in principal amount of 5.875 percent perpetual securities, and $1,044.50 per $1,000 in principal amount of 4.875 percent perpetual securities.

“Recalibrating ICTSI’s capital structure through the combined new issue of $300 million 10-year fixed rate bonds at 3.5 percent and this successful tender offer of our equity-accounted perpetual securities achieves a trifecta of value-accretive objectives for our stakeholders,” ICTSI senior vice president and chief financial officer Rafael Consing Jr. said.

“This exercise will result to a substantial reduction in our overall financing cost while extending liability duration, an enhanced return on equity, and the integration of the rising cashflows from international subsidiaries in our long-term balance sheet strategy,” Consing said.

ICTSI said settlement of the tender offer for the securityholders is expected to take place on Nov. 19.

Following the purchase and cancellation of the tendered perpetual securities on the settlement date, the company said an aggregate principal amount of $216.24 million of the 5.875 percent perpetual securities and $289.78 million of the 4.875 percent perpetual securities would remain outstanding.

Royal Capital B.V. launched last Nov. 8 a tender offer for purchase for cash outstanding $400 million 5.875 percent and $375 million 4.875 percent senior guaranteed perpetual capital securities.

ICTSI is also raising $300 million through the issuance of senior unsecured guaranteed fixed rate notes by subsidiary ICTSI Treasury B.V.

The new notes offer will have a tenor of 10 years and coupon rate of 3.5 percent.

ICTSI said proceeds of the issuance would be for refinancing and general corporate purposes, among which is to potentially fund the tender offer for certain existing senior guaranteed perpetual capital securities of Royal Capital B.V.

Source: https://www.philstar.com/business/2021/11/18/2142010/ictsi-announces-successful-tender-offer-perpetual-securities

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