ICTSI raises $300M from notes issue

Port operator International Container Terminal Services Inc. (ICTSI) has raised $300 million from the issuance of medium-term notes (MTN).

The MTN program allows the company to issue as much as $750 million in notes as ICTSI looks to fund capital expenditures (capex) over the next year.

“It had the largest demand ever for a Philippine corporate debt issue at $5.5 billion. About 179 companies participated and the deal was 18.3-times oversubscribed even without a road show,” said Lauro Baja, managing director of UBS Philippines, one of the deal’s two arrangers.

Yield was initially settled at 5.25 percent, but eventually narrowed to 4.25 percent due to strong demand, Baja said.

The issue size was originally $200 million for the 10-year notes, but was raised to $300 million.

The notes, issued by ICTSI’s wholly owned subsidiary ICTSI Treasury BV, were issued at a coupon rate of 4.625 percent.

By geographical distribution of investors, 90 percent came from Asia and 10 percent from Europe.

“The proceeds from this will be used for refinancing and general corporate purposes. This will also fund future capex requirements and acquisitions,” ICTSI Treasurer Joel Consing said earlier this week.

In several transactions in 2011 and 2012, ICTSI raised $350 million via the issuance of perpetual dollar bonds, which are considered equity by the issuer but with some features of a debt instrument.

ICTSI earlier said it would earmark $83 million of its retained earnings for additional working capital.

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