Chilean operator of port, towage and logistics services Sociedad Matriz SAAM has placed a total of UF 1.2 million ($42 million) in bonds on the local market as the company prepares to wrap up the acquisition of Intertug.
On 23 June 2020, a total of UF 1.2 million in E series, 10-year bonds were placed with a rate of 1,25 per cent and a spread of 143 points over the benchmark rate. Banchile Citi Global Markets and Link Capital Partners advised on the transaction, which included a virtual roadshow for more than 50 investors.
“The placement drew strong demand from local capital market investors. This issuance reinforces the market’s confidence in SAAM even in these times of crisis,” Macario Valdés , CEO of SAAM, commented.
“The funds will be used primarily to finance our growth plan and consolidate our position in the twelve countries where we operate,” he explained.
Earlier this year, SAAM signed an agreement with shareholders of Intertug Investment Holding, a towage services provider operating in Colombia, Mexico and Central America, to acquire 70 per cent of the company.
The deal will consolidate SAAM’s position as the largest tug operator in the Americas. Once the transaction is completed, SAAM will operate a fleet of more than 170 tugs in 11 countries.
In the first quarter of this year, SAAM reported net income of $18 million, on par with the corresponding period last year. An extraordinary gain of $2.8 million from the sale of real estate in Valparaíso and the ongoing effect of the purchase of the towage operations acquired from Boskalis helped offset the drop in volumes as a result of the coronavirus crisis, according to SAAM.
Isolating these effects, the company’s net income fell 18 per cent during the quarter, mainly due to reduced volumes transferred at Chilean port terminals, which was partially offset by volumes at terminals operated elsewhere in the Americas.