ICTSI prices notes at 4.75%

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International Container Terminal Services Inc. (ICTSI) it has officially priced its 10-year $400-million senior notes offering at 4.750 percent coupon, payable on a semi-annual basis.

It also offered the bond at an offer price of 99.607 percent of par value, to bring the senior notes’ yield to 4.8 percent per annum.

“Upon issuance, the Notes will constitute direct, unconditional, unsubordinated, and unsecured obligations of the Issuer, pari passu without any preference among themselves and with all other outstanding unsecured and unsubordinated obligations of the issuer,” the company said.

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“The transaction furthers ICTSI’s prudent balance sheet management and capital structure optimization initiatives in response to the economic disruption due to the COVID-19 pandemic,” it added.

The notes issuance was 4.6x oversubscribed with tenders reaching over $1.8 billion.

ICTSI said its “global, diversified footprint and uniquely focused origin and destination portfolio” were central to investor appeal.

“The offering attracted strong demand from a wide array of accounts and pricing was compressed 45 basis points from initial marketing to final pricing levels,” it said.

“The notes were widely distributed with fund and asset managers allocated approximately 65 percent of the offering, banks and private banks, 21 percent, and insurance and pension funds, 14 percent. By geography, Asia, EMEA (Europe, the Middle East and Africa), and offshore US investors took approximately 80 percent, 19 percent, and 1 percent, respectively,” it added.

The 10-year senior unsecured notes mark ICTSI’s return to the senior unsecured notes market, having last completed a fixed-for-life perpetual capital securities transaction in January 2018, noted ICTSI.

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