Apr 2014 Financial News

Neal & Massy Holdings Limited – Issue of TT$1.2B in Fixed Rate Bonds

Apr 08, 2014

Notice of Intent by Neal & Massy Holdings Limited (Neal & Massy or the Company), through RBC Merchant Bank (Caribbean) Limited (RBCMB), to issue Fixed Rate Bonds in Trinidad & Tobago not exceeding the total aggregate amount of One Billion, Two Hundred Million Trinidad & Tobago Dollars (TT$1,200,000,000)
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The Company and RBC Merchant Bank (Caribbean) Limited (“RBCMB”), mutually agreed the commercial terms for the issue of bonds by the Company for a total aggregate amount of one billion, two hundred million Trinidad & Tobago dollars (TT$1,200,000,000) (the “Principal Amount”). Pursuant to the terms of a non-binding term sheet approved by the parties, RBCMB, as the Sole Lead Arranger, agreed to arrange the bond offering on a private placement basis, to potential investors in Trinidad & Tobago for the Principal Amount (the “Bond Offering”).

Approximately seven hundred million Trinidad & Tobago dollars (TT$700,000,000), from the proceeds of the Bond Offering is intended to be utilised by the Company to pay existing debt. The remainder of the proceeds will be used to fund future strategic acquisitions and expansions of the Company’s business, throughout the Caribbean basin, and to pay all fees and expenses associated with the Bond Offering.

The Bonds will be issued in up to three series, ranging in tenor between 7-15 years. The number of series and aggregate amount of Bonds issued in respect of each series (in total not to exceed the Principal Amount) will be dependent on market interest.

Interest on each series of the Bonds will be fixed and paid on a semi-annual basis in arrears commencing six (6) months after Bond Issuance. The principal due on each Series will be repaid via a bullet payment at their respective maturity dates. RBCMB will be circulating an Information Memorandum providing potential investors with such information relating both to the Company and the Bond Offering as may be required for them to make an informed decision on whether or not to participate in the Bond Offering.

It is proposed that the closing date for the Bond Offering will be on or about May to June, 2014 subject to receipt of all necessary approvals or consents.

This Notice is published in accordance with Section 64(1)(b) of the Securities Act, 2012


Source:
The Trinidad and Tobago Stock Exchange Limited
Tuesday April 8, 2014