Global Ports Holding Plc
Completes project
financing and begins cruise operations at San Juan Cruise Port,
Puerto Rico
Global Ports
Holding Plc ("GPH" or "Group"), the world's largest independent
cruise port operator, is pleased to announce that its wholly-owned
subsidiary San Juan Cruise Port LLC (“SJCP”) has
successfully reached financial closing of
the PPP Agreement and simultaneously concluded the debt financing
for the initial phase of its investment in San Juan Cruise Port and
has now taken over cruise operations at San Juan Cruise Port for
GPH.
The successful long-term project
financing was achieved through the issuance, by San Juan Cruise
Port, of two bonds totalling USD 187 million. USD 110 million has
been raised through the issuance of a Series A bond due 2045 and
underwritten by Barclays Capital Inc, which will now be placed in
the US municipal bond market at an average coupon rate of 6.6%. USD
77 million was raised through the issuance of a Series B bond due
2039 to US institutional investors at a fixed coupon of
7.21%.
The bonds have received an
investment grade credit of BBB- from S&P. The Series A bond
will fully amortize 21 years, with a weighted average duration of
c19 years. The Series B bond will fully amortize over 15 years,
with a weighted average duration of c12 years.
Port
investment
San Juan Cruise Port is currently
a popular transit port and homeport. However, the cruise port
infrastructure needs significant investment to ensure continued
operations over GPH’s 30-year concession term and to meet the needs
of the modern and fast-growing cruise industry.
Under the terms of the concession
agreement, SJCP will pay the Puerto Rico Ports Authority an upfront
concession fee of USD 77 million. During the initial investment
phase, SJCP will invest approximately USD 100 million, primarily
focused on critical infrastructure at Pier 4 and Pan American Piers
together with upgrades to the terminal buildings and the walkway in
front of the Old San Juan piers. In addition, the investment
includes transaction expenses, reserve accounts customary for a
project-financing of this nature and other incidental uses of
proceeds.
As well as investing in the port's
infrastructure, as part of this initial investment, SJCP will
invest in modernising the cruise port experience for cruise
passengers, cruise lines and local vendors and will use GPH’s
global expertise and operating model to improve the management of
the cruise port operations. GPH will also invest in systems,
equipment, and technology to enhance the cruise port's operational
performance and ensure environmental protection, safety, and
security.
The management approach of GPH
will ensure that the port is integrated into Old San Juan and
Puerto Rico's thriving tourism sector as a whole, creating
significant opportunities for local businesses to benefit directly
from the improved facilities and the expected growth in cruise
passenger volumes.
The second investment phase will
commence subject to certain pre-agreed criteria, including cruise
passenger volumes recovering to pre-pandemic levels. In this phase,
SJCP will invest an estimated USD 250m in expanding the capacity of
the San Juan Cruise Port by building a completely new cruise pier
and state-of-the-art homeport terminal capable of handling the
world's largest cruise ships at Piers 11 and 12. The financing for
this second phase is expected to come from the US municipal bond
market and North American based financial institutions.
Network
expansion
The addition of San Juan Cruise
Port is a significant development in GPH's strategic ambitions in
the Caribbean. San Juan Cruise Port, which welcomed 1.8m unique
passengers in 2019 (including c. 0.4m homeport passengers,
representing 2.2m passenger movements), is the third-largest cruise
port in GPH's global network.
San Juan Cruise Port is a
strategically important port in the Caribbean cruise market,
perfectly positioned to be included in both Eastern Caribbean and
Southern Caribbean itineraries. In addition to its airport and
hotel infrastructure, Puerto Rico is a US territory, making it an
attractive homeport destination for Eastern and Southern Caribbean
itineraries.
The addition of San Juan Cruise
Port takes the total number of ports in GPH’s network to 29, with
annual passenger volumes of close to 20 million expected for the 12
months to 31 March 2025, which is expected to rise to 30 ports and
over 20 million passengers when St Lucia joins the network before
the end of the current financial year.
Global Ports
Holding, Americas Regional Director, Mike Maura, said:
"We are delighted to welcome San
Juan Cruise Port into the world's largest cruise port network. As
well as being a fantastic destination, San Juan is a strategically
important port that is perfectly positioned to play a pivotal role
in Eastern and Southern Caribbean itineraries for decades to
come.
Our investment into this port will
see hundreds of millions of US dollars invested into San Juan
Cruise Port, transforming the port infrastructure and significantly
improving the cruise port experience for passengers while creating
significant opportunities for local businesses to benefit from the
expected growth in cruise passenger volumes.
I would like to thank the
Government of Puerto Rico and the Puerto Rico Port Authority for
their support throughout the
process. We look forward to delivering a world-class cruise port
that can benefit Puerto Ricans for many years to come.”
CONTACT
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For investor, analyst and
financial media enquiries:
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For media enquiries:
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Global Ports
Holding, Investor Relations
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Global Ports
Holding
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Martin Brown
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Ceylan
Erzi
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Telephone: +44 (0) 7947 163
687
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Telephone: +90 212
244 44 40
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Email:
martinb@globalportsholding.com
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Email:
ceylane@globalportsholding.com
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