Durrant Pate/Contributor

Fresh from successfully raising J$3.3 billion in a bond offer in June, Mayberry Jamaican Equities (MJE) is going back into the domestic market with another secured bond offer for J$1 billion, with the option to upsize for a further J$500 million.

This latest bond offer of upwards of J$1.5 billion is in two tranches of J$500 million each. The first tranche is for 13 months and offers an interest rate of 8.75 per cent per annum, while the second tranche is for 23 months at an interest rate of 9.25 per cent per annum 

The invitation to subscribe opens on August 21 and will close at 4:30 pm on September 12, subject to the right of the MJE to close at any time after 9:00 am on August 21. MJE, which is involved in the business of investment in private equity, is using its equities portfolio to provide collateral sufficient to execute the bond offer.

It is expected that the secured bonds will be admitted to listing on the bond market of the Jamaica Stock Exchange (JSE) within 21 days of the closing date.  The minimum subscription is J$20,000, and further increments of no less than J$10,000

Use of proceeds

The company intends to use the proceeds from this invitation to repay existing indebtedness of approximately J$996.46 million owing under the 9.25 per cent Secured Bonds Tranche I due July 26. The balance of the net proceeds will be used to expand MJE’s investment portfolio as well as to pay expenses associated with the invitation, which it estimates will not exceed J$40 million inclusive of general consumption tax. 

Interest will be calculated and accrued from day to day, but prorated on the basis of a 360-day year with 30 days comprised in each month, and paid quarterly on each interest. The first interest payment date will be September 30.

Thereafter, interest will be due and payable on December 30, March 30, June 30, and September 30 each year.