Durrant Pate/Contributor

Cross-listed regional conglomerate Massy Holdings has secured a TT$600 million financing facility through Trinidad and Tobago’s First Citizens Bank Limited.

First Citizens Bank will issue a fixed-rate bond in the twin-island republic on behalf of Massy, which has operations in Jamaica, Trinidad, throughout the Caribbean Basin, as well as in Colombia and South Florida.

The value of the bond should not exceed the total aggregate amount of TT$300 million. First Citizens Bank will additionally provide Massy access to a medium-term loan not exceeding the total aggregate amount of TT$300 million.

Financing based on commercial terms

Massy and First Citizens Bank have mutually agreed to the commercial terms for the issue of the bond and the loan. Pursuant to binding terms approved by the parties, First Citizens Bank, as the sole lead arranger, has agreed to arrange the bond offering on a private placement basis to potential investors in Trinidad and Tobago for the principal amount. 

All of the proceeds of the bond and the loan are intended to be utilised by Massy to refinance existing long-term debt, which matured in 2024 and was refinanced using short-term bridge financing. These two transactions will not result in any new borrowings for the company. 

Loan and bond terms in detail 

The bond will be issued in one series and will carry a tenor of 15 years. Interest on the bond will be fixed and paid on a semi-annual basis in arrears, commencing six months after issuance. The principal due on the bond will be repaid via equal semi-annual payments following a five-year moratorium. 

The loan will carry a tenor of eight years. Interest on the loan will be annually reset and paid on a quarterly basis, commencing three months after closing. 

First Citizens Bank will provide potential investors with such information relating both to the company and the bond offering as may be required for them to make an informed decision on whether or not to participate in the bond offering.

It is proposed that the closing date for the bond offering will be in April 2025, having received all regulatory approvals.