Durrant Pate/Contributor

Air conditioning company, CAC 2000 Limited has tapped the local capital market for J$250 million through a cumulative preference share issued through brokers Scotia Investments Jamaica.

The net proceeds from the sale of the preference shares will be used by CAC 2000 to refinance existing debt. The offer amount is for up to a maximum of J$250 million. The issuance will be up to 125,000 shares at a redemption price of J$2 per share with a dividend yield of 13 per cent paid quarterly.

The bond is set to mature in three years. Dividends will be paid quarterly on the 15th day of each month as declared by the Directors of CAC 2000. In the event that such date for payment is not a business day, dividend payment shall be made on the next succeeding business day in the respective month. 

CAC 2000 reserves the right to accumulate unpaid dividends for two consecutive quarters. If the dividend is not paid in full on no more than two consecutive quarterly dividend payment dates, the preferred shares remain in issue, while the dividend (or unpaid part thereof) shall not lapse.

However, dividends shall accumulate and be payable on the next succeeding quarterly dividend payment date when the issuer has sufficient distributable profits available to fund the payment. The company does not intend to list the preference shares on the Jamaica Stock Exchange (JSE).