A subsidiary of International Container Terminal Services Inc. announced on Monday a debt tender offer for $400 million worth of perpetual bonds and an offering of new securities.
The port operator owned by tycoon Enrique Razon Jr. said unit Royal Capital BV would offer cash to holders of its 6.250 percent senior guaranteed perpetual capital securities callable in 2019 and 5.500 percent senior guaranteed perpetual capital securities callable in 2021.
The tender offer ends on October 12 at 5 p.m. Central European Summer Time.
“The company is undertaking the tender offer as part of its strategy to manage the maturity profile of its existing debt obligations,” ICTSI said.
The board of ICTSI also approved the issuance by Royal Capital B.V. of new senior perpetual securities guaranteed by the port operator. The company has not yet disclosed the size and the interest of the new bonds to be issued by the ICTSI subsidiary.
ICTSI has tapped Citigroup Global Markets Ltd., The Hong Kong and Shanghai Banking Corp. Ltd. and Standard Chartered Bank as joint lead managers for the new securities offer.
The port operator earlier reported a net income of $92.6 million in January to June, 12 percent lower than $105.7 million in the same period last year.
ICTSI said the drop in net income was due to unfavorable volume mix, lower non-containerized and storage revenues, reduced capitalized borrowing costs and higher depreciation and amortization expenses related to Tecplata S.A., the company’s new terminal in Buenos Aires, Argentina.
Gross revenues from port operations reached $550.8 million in the first half, compared with $552.1 million reported in the same period last year.
ICTSI handled consolidated volume of 4,264,633 twenty-foot equivalent units in the first six months, up 10 percent from 3,888,130 TEUs handled in the same period in 2015.
The company has allotted $420 million in capital expenditures this year, mainly for the completion of the initial stage of its new container terminals in Australia, Democratic Republic of Congo and Iraq, and the continuing development of projects in Honduras and Mexico.