PORT OF SPAIN – The Massy Group of Companies has issued TT$1.2 billion (BDS$378.7 million) in fixed rate bonds to get long term financing to pay off existing debt and fund several new investments.
Massy and sole lead arranger for the bond RBC Merchant Bank (Caribbean) recently agreed to the commercial terms of the bonds after which RBC arranged the bond offering to investors in Trinidad and Tobago.
In a statement Massy said issuing a private bond was a way to borrow from several investors who are looking for solid investment opportunities over a fixed time.
In a previous notice to shareholders on its website Massy said about $700 million of the proceeds from the bond offering were to pay off existing debt.
Massy added that it was also an “opportunity to get long term financing at low interest rates and to fund several new investments in the Retail, Energy and Automotive businesses”.
“The amount was determined by assessing the need for investment and the group’s capacity to borrow. The group maintains good debt ratios after the bond is issued,” it said.
The bonds will be issued in up to three series, ranging in tenor from seven to 15 years. Massy said its bonds presented an “excellent opportunity” for institutions to invest for ten and 15 years with a company they can trust, who will comply with the interest and repayment terms of the bond.
Massy registered $652 million in profits in 2013. The group also spent “tens of millions” of dollars this year to rebrand its 60 or so subsidiaries across the region from Neal & Massy to “Massy”, Group chief executive Gervase Warner said. (Express)
