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Financial News

Nov 2014 Financial News

Eppley raises $350 million in 60 seconds

Nov 21, 2014

FINANCIAL outfit Eppley Limited raised $350 million in a new preference share offer that was oversubscribed 60 seconds after opening.

The funds will provide liquidity for the company to further offer insurance premium financing, lease and loan financing. Initially, the company aimed to raise $250 million but increased the value in order to take advantage of the interest expressed by applicants.

"In the prospectus we indicated that we had the ability to upsize to an amount of shares equivalent to raising approximately $350 million," Eppley Managing Director Nicholas Scott told the Jamaica Observer in a phone interview following the offer. "So we exercised that upsizing option. To put it in plain English, the amount of money we will receive is approximately $350 million."

The preference shares at $6 will offer a yield ranging between 10 and 11.5 per cent per annum depending on the tenor. The shares mature in five years in November 2019. The offer opened on November 11 at 9:00 am and closed at 9:01 am due to oversubscription, according to a press release issued by JMMB Securities Limited which acted as lead broker. The offer was oversubscribed by approximately 250 per cent.

JMMB expressed pleasure that the market was receptive to the investment opportunity.

"The success of the invitation was due to the fact that we are responsive to market demand and structured the preference share offer to meet the needs of our client and the investing public," a news release from JMMB Capital Markets Unit quoted Karl Townsend, chief country officer Jamaica.

Eppley raised $300 million last year in a similar preference share offer. The company earned $12.3 million for its June second quarter 2014 compared to $5.7 million a year earlier. Scott attributed the profit jump to the optimisation of its capital. The company holds some $336 million in shareholder equity.

Eppley, formerly Orrett and Musson Investment Company Ltd, was listed on the Junior arm of the Jamaica Stock Exchange in 2013. It is majority-owned by Mussons Group and the ATL Pension Fund.

 

Source:
BY STEVEN JACKSON Business reporter jacksons@jamaicaobserver.com
Jamaica Observer

Friday November 21, 2014

http://www.jamaicaobserver.com/business/Eppley-raises--350-million-in-60-seconds_17981917