Tuesday 16 July, 2019

Chukka Caribbean closes $2 billion bond offering

Chukka Caribbean via Facebook.

Chukka Caribbean via Facebook.

Adventure tours company Chukka Caribbean Adventures has successfully closed a $ 2.0 billion Dual Currency Bond Offering.

The business is based in over seven locations in Jamaica, as well as operations in Turks & Caicos, St. Lucia and Belize.

The bond which was issued in both JMD and USD denominations, has a fixed coupon of 8.50 per cent and 6.50 per cent respectively. Both the USD and JMD series has a maturity of five years and will pay interest quarterly. 

The proceeds of the financing will be used to refinance existing debt and free up cashflow which will be used by the company to purse expansion opportunities. This is the first time that the Chukka Caribbean has tapped the local capital markets and the offering was well received amongst investors. 

Sygnus Capital acted as the lead arranger and Sagicor Investments was the co-arranger.

This represents another major capital markets transaction that has been executed by Sygnus following up on the success they had in 2017, where they raised over J$5.5 billion for their clients.

Alexander Melville, Director of Treasury of Chukka was quoted as saying “We are very pleased with the level of demand for our bond from the market and we received a very competitive interest rate that will allow us to save on debt servicing. This transaction will also allow us to establish a relationship with institutional investors and we expect these mutually beneficial relationships to continue as we seek alternative financing options to grow our business.” He further stated, “Sygnus and Sagicor Investments are two of the top investment banking experts in the market and their combined expertise allowed the seamless execution of the transaction.”

“Thousands of tourists and locals have soared through air on zip-lines, snorkelled and gone horseback riding with Chukka Caribbean Adventures. The tourism industry has always presented the opportunity for exponential growth, and this bond offer provides Chukka with an ability to continue on its growth trajectory, while further enhancing the tourism product, and with it communities across Jamaica. Sagicor Investments is proud to continue to play a part in the development of Jamaica’s tourism sector.” commented Mischa McLeod-Hines, Manager – Capital Markets, Sagicor Investments Jamaica.

Sygnus Capital CEO, Beris Grey, commented, “We are making significant progress as a business, and our clients trust in our expertise and the strength of our team to successfully execute complex and important financing for them at all times. At Sygnus, our sole focus is to achieve the best solution for our clients.  Working with Sagicor Investments was a pleasure and as our partner, our goals were aligned and this ensured that we delivered value for Chukka.”

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