Durrant Pate/Contributor

Express Catering Limited’s (ECL) US$10 million bond offer has been oversubscribed, boding well for the Montego Bay-based airport food and goods concessionaire.

The equity offer closed on Friday (March 1), a week earlier than planned. The basis of allotment of the senior secured bonds due 2026 will be published on the Jamaica Stock Exchange’s (JSE) website.

ECL thanked all applicants who participated in the bond offer, where the proceeds will be used for debt repayment and capital expenditure. The company has also congratulated all ECL partners and team members who have been crucial in making this bond offer a success.  

The US$10 million bond offer was opened on February 9 with the option to upsize to US$12 million. The bond will mature in three years with a fixed interest rate of 8.50 per cent per annum. 

The minimum subscription is US$100 and further increments of no less than US$100. The first interest payment date will be May 30.

Interest will be due and payable annually on February 28, May 30, August 30, and November 30. 

The final Interest payment date shall also be the maturity date. The company intends to use the proceeds to repay existing indebtedness and capital expenditure.

ECL will repay US$8.5 million owing to Sygnus Credit Investments, while the remaining portion will be used for capital expenditure to complete the build-out of its food court at the Sangster Airport. 

The company generated annual revenues of US$21.2 million for the financial year ended May 31, 2023, representing an increase of 48.9 per cent from the US$14.2 million revenue generated for the previous financial year in 2022.