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ICTSI signs for $120m “war chest”
01 Nov 2006
International Container Terminals Services Inc (ICTSI) has signed a $120m Standby Credit Facility with a consortium of banks led by ABNAMRO Bank N.V. The facility is designed to complement ICTSI’s expansionist ambitions.
Martin O’ Neil, chief financial officer, ICTSI, speaking at the signing ceremony for the loan, held in Hong Kong in mid-October, said:“This is ICTSI’s first borrowing in the international syndicated loan market and it has proved a highly successful exercise, and as such a testament to ICTSI’s performance, management and the market niche we have carved for ourselves.We went to the market seeking a $80m Standby Credit Facility, to be used for future acquisitions in the marine container terminal sector, and this was heavily over subscribed, hence we upsized the deal in response to the very strong demand.”
ICTSI currently maintains an overseas portfolio of terminals on four continents of the world and has investment and operating experience on six continents overall.
Consolidation in the container terminal operating sector, which has been characterised by both acquisition activity and increased linkage between groups at the top end of the sector, has seen ICTSI emerge as one the few remaining true independents in the container terminal operating sector,a reality that the group expects to progressively generate more opportunities for it in the global marketplace.
“We are a robust group, looking to capitalise on our proven know-how and expand aggressively internationally over the short to medium term and this new financial ‘war chest’ will undoubtedly help us to achieve this important goal,” underlines Enrique K Razon Jr, chairman and president of ICTSI.
ABN- AMRO Bank NV is the lead bank for the syndicated loan, which includes a total of 19 banks in all, including five Joint Coordinating Arrangers, namely, ABN-AMRO Bank N.V., Sumitomo Mitsui Banking Corporation, Standard Chartered Bank,Calyon and HSBC.
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