Philippines' International Container seeks consents for 7 3/8% notes

By Marisa Wong

Madison, Wis., May 23 - International Container Terminal Services, Inc. announced it began soliciting consents from holders of its $450 million 7 3/8% notes due 2020 to amend the terms and conditions of the notes.

The proposed amendments are meant to align the treatment of the 7 3/8% notes with the treatment of the $200 million subordinated guaranteed perpetual capital securities issued by subsidiary Royal Capital BV and guaranteed by International Container earlier this month.

The company said the perpetual securities receive 100% equity treatment under the Philippine and International Financial Reporting Standards. However, in calculating the leverage ratio under the notes, any issuance of preferreds or subordinated debt that receives equity accounting treatment under the standards would be counted, according to the company announcement. As a result, there is an inconsistency in the way the perpetual securities are treated for accounting purposes under the standards and under the leverage ratio calculation under the 7 3/8% notes.

There will be a noteholders meeting on June 16 to consider and possibly approve the proposed amendments.

The Hongkong and Shanghai Banking Corp. Ltd. (212 525-0866) is the solicitation agent, and Bondholder Communications Group, LLC (212 809-2663) is the information and tabulation agent.

International Container is a Manila, Philippines-based port operator.

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