Information gleaned by IC Insider has revealed that the capital market has been very active in Jamaica, despite the challenging economy.
Mystic Mountain, the visitor attraction located in Ocho Rios, offered $500 million of 10.50 percent preference shares in a private placement in July. The company intends to apply to the Jamaica Stock Exchange for the listing of all of the Preference Shares by way of introduction and such application will be made after the lapse of six months following the closing of the Offer. NCB Capital Markets were the brokers for the issue.
The original offer was for up to One Hundred Million ($100,000,000) at 9.75% 5 year Cumulative Redeemable Preference Shares at a price of Five Dollars in Jamaican currency (J$5.00) per share with an option to extend for a further two (2) years with interest rate of 10% in year six and 10.50% in year seven. This was later upped to $500 million at 10.50 percent for all years.
CAC2000 Ltd, an engineering company specializing in applied air conditioning systems, is said to have been in the market to raise $100 million in preference shares as well. Details of the offer and the terms are not yet known to IC Insider.
Facey Commodity, a subsidiary of the Mussons Group of Companies, has raised US$2 million at 9 percent commercial paper with a duration for just over a year. This is the third trange within a six week period. The instrument has option that investors can opt to get back 90 percent of the principal after six months by giving 30 days’ notice. Interest is payable monthly. Mayberry Invesrments is the broker handling the paper.
Jamaica Money Market Brokers (JMMB) went to the market to raise $750 million between 7.25-7.50 percent but collected $1.44 billion as JMMB clients gave the issues a ringing endorsement by pumping in $1.4 billion of the amount, while the general public offered to purchase only $39 million. The issue will be listed on the Jamaica Stock Exchange. What has been overlooked by investors in this issue is that JMMB presently has preference shares on the market with yields of 8.50 and 8.75 percent, which is a far better deal. Similarly is the Proven Investments instrument at 8 percent, also listed on the Jamaica Stock Exchange.
Jamaican Teas is another company in the process of tapping the market for a bond issue to raise funds.
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