International Container Terminal Services, Inc. (ICTSI) successfully closed and signed today an inaugural Loan Facility Program (the Program) and a USD350 million syndicated revolving credit facility (the Revolving Facility) with a large group of international and domestic banks.
ICTSI’s Loan Facility Program is the first such structure established by an Asian corporate. The Program serves as a master platform from which other loan type financing instruments can be issued as required. It also serves to harmonize the covenants, undertakings and other generic terms across the capital structure of ICTSI, in particular with its existing Euro Medium Term Note program.
The positive reception to the innovative structure highlights the growing international market appetite for assets from the Philippines, and further establishes the credentials of ICTSI’s management in bringing pioneering initiatives to the capital markets.
Commenting on the innovative structure and its acceptance by the market, Rafael J Consing, ICTSI Vice President & Treasurer, said: “We are very pleased with the result of the syndication. This transaction highlights the core attributes most suitable to our funding needs - streamlined execution, reduced negative interest carry, incurrence-based covenant regime and a diversified funding base.”
The Revolving Facility is the first tap from the Program. The funds available under the Program will be used for strategic investments and acquisitions in addition to general corporate purposes.
The facility was originally launched at USD250 million, and was subsequently increased to USD350 million on the back of strong demand from banks from the Asia-Pacific syndicated loan market. Total order book was at USD835 million, representing a 3.34 times oversubscription with interest from 24 domestic, regional and international banks. The success of the transaction is a strong testament of the capital market’s confidence in the credit strength of ICTSI and is recognition of the deal structure.
Australia and New Zealand Banking Group Limited (ANZ) and Standard Chartered Bank (SCB) acted as Program Arrangers, and fully underwrote the Revolving Facility.
Lynette V Ortiz, SCB Philippines Managing Director and Head of Global Markets, said: “Standard Chartered is proud to support ICTSI’s growth strategy through this inaugural loan facility. The upsize of the facility and exceptionally strong response from the market is a testament to ICTSI’s solid financial performance and leadership. SCB is firmly committed to ICTSI, and we are continuously supportive of our key clients in the Philippines.”
Panadda Manoleehakul, ANZ CEO for Philippines and Thailand, said: “At a final size of USD350M and an oversubscription of 3.34 times of the original deal size, this transaction is the largest USD Philippine loan in the year to date and one of the most successful syndicated loans ever. The first-of-a-kind Loan Facility Program also breaks new ground in syndication loan documentation in Asia.”