Wednesday 13 December, 2017

Jamaica Producers raises $1.5 billion

The team that pulled together the Jamaica Producers Group $1.5 billion Offer. In picture are Jamaica Producers Executives, Charles Johnson (3rd left) and Jeffrey Hall (2nd right) and Simone Pearson (right) joined by Gregory Samuels (left) Sygnus Capital Ltd and Lead Arranger team at Scotia Investment Karene Blair (2nd Right) and Dylan Coke (3rd Left).

The team that pulled together the Jamaica Producers Group $1.5 billion Offer. In picture are Jamaica Producers Executives, Charles Johnson (3rd left) and Jeffrey Hall (2nd right) and Simone Pearson (right) joined by Gregory Samuels (left) Sygnus Capital Ltd and Lead Arranger team at Scotia Investment Karene Blair (2nd Right) and Dylan Coke (3rd Left).

Jamaica Producers Group recently raised J$1.5 billion in debt financing from the local capital markets.

Scotia Group made the announcement in a news release on Tuesday. Its investment arm, Scotia Investments Jamaica Ltd was the Lead Arranger on the transaction and Sygnus Capital Ltd acted as Joint Arranger.

According to Scotia, the offer benefitted from exceptional liquidity in the market and was quickly taken up in full by local institutional investors.

Jamaica Producers Group is a diversified conglomerate with operations in Specialty Food and Logistics.  Its principal subsidiaries include Kingston Wharves, a leading multipurpose port serving the Caribbean and Hoogesteger, a leading fresh juice company in Northern Europe. 

It has manufacturing operations in Jamaica, the Dominican Republic and Holland.

Jeffery Hall, Group Managing Director of Jamaica Producers Group, said: "We are pleased to have been able to tap the local capital market to support our ongoing business development programs.”

The 7-year Notes carry a fixed rate coupon of nine per cent per annum for the first five years, thereafter floating at the GOJ 6-months WATBY benchmark + 200 basis points.  The proceeds will be used to refinance existing debts and for general corporate purposes, Scotia said.

The Arrangers advised that the offer was substantially oversubscribed and Dylan Coke, Vice President, Origination & Capital Markets, Scotia Investments Jamaica Ltd commented that SIJL was “very pleased to be associated with a transaction for one of Jamaica’s most highly respected companies”. 

The sentiment was shared by Gregory Samuels, executive director, Investment Banking & Head of Corporate Advisory at Sygnus Capital Ltd who stated that “the transaction was well executed and shows that the market will always be bullish on good quality investment opportunities that are appropriately structured”