Friday 13 December, 2019

Sygnus to raise up to $4.5 billion

Sygnus headed by CEO Berisford Grey advised that the capital raise will be done in various tranches and may take the form of bonds, loans, notes or preference shares.

Sygnus headed by CEO Berisford Grey advised that the capital raise will be done in various tranches and may take the form of bonds, loans, notes or preference shares.

Sygnus Credit Investments Limited (SCI) plans to raise approximately $4.5 billion to support deals.

Sygnus, headed by CEO Berisford Grey, advised that the capital raise will be done in various tranches and may take the form of bonds, loans, notes or preference shares.

Sygnus currently has a low debt of US$2.6 million to its US$37.2 million in shareholders’ equity.

It means that it could theoretically increase its capital more than 10 times over and still have room to make debt payments based on its level of capital.

On November 14, the directors met and approved plans for the company to increase funding to raise to up to $4.5 million or US$35 million, Sygnus told the Jamaica Stock Exchange in a notice. 

Sygnus Credit’s portfolio companies are diversified across eight major industries and four regions across the Caribbean. 

During the first-quarter which ended in September, entertainment services became the newest industry allocation while it exited telecommunication services. 

The cash it currently holds to spark deals across the region which it calls its dry powder stood at US$10.2 million at the end of September 2019 versus US$18.2 million in the corresponding period in 2018.

“The majority of the available dry powder was due to timing differences between repayments that occurred close to the end of the quarter, and redeployment of those repayments into new investments that were disbursed post-quarter-end,” Sygnus said. 

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