Chelsea Logistics Holdings Corp. (CLHC) confirmed plans to raise P7 billion from the debt market to fund its expansion projects for this year.
CLHC in a regulatory disclosure confirmed a report quoting vice president for finance Ignacia Braga IV as saying the company is considering raising the amount through issuing bonds or commercial papers.
This is the alternative action after the company withdrew this month its offering of P5-billion preferred shares.
Braga said the company has tapped ratings agency Credit Rating and Investors Services Philippines Inc. to do a rating on CLHC “so that if we decide to do it under debt, under bond-raising, commercial papers, at least we will be ready.”
The target fund will mostly be used to develop a warehouse facility on a 2.5-hectare property in Taguig. Braga said CLHC needs about P2.5 billion to complete the project and acquire delivery vehicles.
CLHC president and chief executive officer Chryss Alfonsus Damuy earlier said that upon completion, the new facility’s capacity will be approximately seven times bigger than the existing warehousing capacity of CLHC through WorkLink Services, Inc., which it acquired in 2017.
Braga said CLHC is also building more container yards and buying more equipment after acquiring Trans-Asia Shipping Lines, Inc. The Philippine Competition Commission recently resolved not to take further action on CLHC’s acquisition of 2 million common shares of Trans-Asia.
CLHC, through its two wholly owned subsidiaries—Chelsea Shipping Corp. and Trans-Asia—is engaged in the shipping transport business. It acquired Starlite Ferries, Inc. and WorkLink in 2017, and also has a 28.15% indirect economic interest in transport solutions company 2GO Group, Inc.
