Saturday 19 September, 2020

Eppley refinances US-dollar preference shares

Eppley Limited's Managing Director Nicholas Scott.

Eppley Limited's Managing Director Nicholas Scott.

Eppley Limited has refinanced its US-dollar preference shares with Managing Director Nicholas Scott stating that the transaction was evidence of investor confidence.

“The transaction demonstrates the capital market's continued confidence in Eppley as a result of its long track record of consistently strong returns," Scott said.

He added: “It also improves Eppley's mature profile, boosts its liquidity and allows it to take advantage of investment opportunities in its pipeline.”

In a notice via the Jamaica Stock Exchange, Eppley said, “As a result of requisite approvals received from holders of the US$ Preference Shares, the maturity date with respect to the US$ Preference Shares is now January 24, 2024 and the agreed dividend rate will be 6 per cent per annum, payable monthly, effective January 23, 2021.”

Scott said the preference shares originally had a dividend rate of five per cent with a redemption date of January 23, 2021.

Following the transaction, the dividend rate remains five per cent until January 23, 2021 and thereafter will be six per cent until the new redemption date in 2024.

“This reflects the longer duration of the preference shares and market conditions,” Scott explained.

Eppley provides loans and insurance premium financing.

The company produced earnings per share of $0.21 in the first quarter of 2020, a 6.5 per cent return for shareholders. At the end of the quarter, net asset value was $4.08 per share.

The company cites portfolio diversification as its principal strength, with investments across multiple asset classes “many of which like real estate, infrastructure and secured loans and leases are defensive.”


 

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