ICTSI issues $300M perpetual notes

ICTSI successfully priced a $300 million senior perpetual capital securities due May 2026.

The offer attracted significant investor demand, allowing ICTSI to implement its largest-ever senior perpetual capital securities tightening of 42.5 bps from the initial price guidance of 5.625%.

The new perpetual notes carry an interest rate of 5% per annum. They were widely distributed with fund managers/asset managers, private banks, insurance companies and banks/pension funds accounting for 64%, 18%, 12% and 6% respectively.

By geography, Asia accounted for 91% while Europe were took up the remaining 9%.

“ICTSI’s overall financing and liability management exercise is one of three levers that we focused on in response to the ongoing global pandemic, the other two being the tactical delay in capital expenditures and sustainable cost reduction. This exercise achieved our objectives of reducing capital cost, eliminating call redemption risk in 2021, and further enhancing the strength of ICTSI’s balance sheet,” said Rafael Consing, SVP and CFO of ICTSI.

Citigroup Global Markets Ltd., The Hongkong and Shanghai Banking Corp. Ltdm and Standard Chartered Bank were the joint lead managers and joint bookrunners for the issue.

ICTSI is a leading global container port operator which currently owns and operates a geographically diverse portfolio of 31 terminals in 18 countries across 6 continents.

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