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JM | Nov 6, 2020

Supreme Ventures raises J$3 billion in private placement

/ Our Today

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Money raised will be used to finance expansion plans

 By Durrant Pate

Regional gaming powerhouse, Supreme Ventures Limited has secured $3 billion in a private placement on the Jamaican capital market.

In a notice to the Jamaica Stock Exchange (JSE), where its shares are traded, Supreme Ventures advises that the money was raised through a medium-term fixed-rate unsecured corporate bond at an interest rate of 7%. The 25-year bond matures on October 30, 2025.

It is understood that the funds raised will be used to finance Supreme Ventures expansion plans. The company plans further investment locally and in the regional and has already indicated that it will be acquiring greater equity holdings in companies, which it now has majority control such as AnyBet, which it acquired majority control back in July last year.

At the time of acquisition, Supreme Ventures indicated that it will be seeking to acquire additional shares in a year’s time. The regional gaming company first acquired 51 per cent of AnyBet in July 2019 for $572 million with the sale agreement allowing Supreme Ventures to buy another 29 per cent of AnyBet, equivalent to 4.16 million shares.

Positive credit rating resulted in 7% interest rate on bond

The company was able to attract a reasonable interest rate of 7% given the recent good credit rating assigned by regional credit rating body, Caribbean Information & Credit Rating Services Limited (CariCRIS). CariCRIS assigned BBB+ on a regional and jmAA- for local currency and jmA+ for foreign currency on the national ratings scale.

For the nine months ending September 30, Supreme Ventures posted net profit of $1.6 billion, which is a slight reduction from the $1.76 billion earned during the same period last year. Revenues for the period declined slightly from $28.06 billion in 2019 to $27.94 billion for the period under review.

For the quarter ended September 30 Supreme Ventures was able to better its performance for the same period in 2019. Profits for the period amounted to $622.8 million, representing an improvement over prior year by $96.3 million.

Total gross ticket sales also improved for the quarter totaling $19.9 billion, up12.6 per cent over the corresponding period in 2019. The latest company financials show strong recovery from COVID-19’s impact, with management highlighting that Supreme Ventures continues to strengthen and modify aspects of the operations to be agile.

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