Tuesday 10 December, 2019

Mystic Mountain seeks to double capacity from $1.1 billion debt issue

Mystic Mountain attracts 144,000 visitors annually. The park spans 100 acres of semi-evergreen rainforest and is recognised as an ecotourism adventure park. Photo via Mystic Mountain's Facebook page.

Mystic Mountain attracts 144,000 visitors annually. The park spans 100 acres of semi-evergreen rainforest and is recognised as an ecotourism adventure park. Photo via Mystic Mountain's Facebook page.

Mystic Mountain is seeking to double its capacity with the proceeds of a proposed debt issue aimed at raising $1.1 billion.

The funds raised will be used to double the park's capacity from approximately 200 persons per hour to 400 persons per hour.

Mystic Mountains also wants to eliminate wait times during peak periods and accommodate increased visitor arrivals projected for the park over the next 10 years.

Mystic Mountain will spend $570 million on doubling the park’s capacity. Another $460 million will be used to refinance existing bonds, while $40 million will be placed in a debt service reserve account. The remaining $30 million will be spent on transaction costs.

From $570 million, Mystic Mountain will create three new attractions — the rollerglider, ropes obstacle and climbing wall attractions. Together, all three attractions will have the capacity to entertain 200 people per hour.

Mystic Mountains also plans on upgrading its administrative office spaces and the park’s entrance. It will also build an additional nurse’s station, put in place new reservation and ticketing systems, an automatic photo system, upgrade the existing bobsled ride and construct sea view cabanas for daily rental.

“The park is currently operating at its maximum capacity. With excess demand and the objective of widening its product offering, the company is seeking funding to expand its operations,” Mystic Mountain said.

Sygnus Capital is the lead arranger in the issue.

Mystic Mountain believes that the declining interest rate environment in Jamaica has presented an opportunity to reduce its borrowing cost by refinancing its higher cost debt at more favourable terms.  

Located in Ocho Rios, St Ann, Mystic Mountain attracts 144,000 visitors annually. The park spans 100 acres of semi-evergreen rainforest and is recognised as an ecotourism adventure park.

Its attractions and features include the Rainforest Sky Explorer, Rainforest Bobsled Tour, Rainforest Zip-Line Canopy Tour, Mystic Pavilion and Lookout Tower, Mystic Waterslide and Infinity-Edge Pool and the Hummingbird Garden.

Caribbean Information and Credit Rating Services Limited (CariCRIS) has assigned initial creditworthiness ratings of adequate for Mystic Mountains. 

For the latest news, download our app at http://bit.ly/GetALoopJM for Android; and at http://bit.ly/GetiLoopJM for IoS.

 

Get the latest local and international news straight to your mobile phone for free: