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JM | Dec 24, 2020

Sygnus Credit Investments extends APO by one week

/ Our Today

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Now scheduled to close December 30

Alternative investment company Sygnus Credit Investments (SCI) has extended by one week its additional public offer (APO) for up to 196,372,431 new ordinary shares, which was scheduled to have been closed today.

The offer, which can be upsized by an additional amount of 82,271,772 shares, will now close on Wednesday, December 30, 2020. SCI is seeking to raise upwards of US$32 million ($4.8 billion) in its APO, if upsized. The price per share for the general public is US$0.14 per US$ share and J$16.30 per J$ share.

SCI has agreed to have a discounted share price for existing shareholders and team members of US$0.127 per US$ share and J$14.70 per J$ share. SCI is the lead arranger for the APO while Sagicor Investments Jamaica and NCB Capital Markets will act as joint lead brokers.

The APO prospectus, which was released over two weeks ago, indicated that the proceeds from the offer will be used for pipeline investments as well as growing the three-year-old company. In a statement accompanying the prospectus, SCI Chairman Clement Wainwright Iton remarked that the APO represents a key initiative on a multi-step journey within alternative investments to deepen and expand the Caribbean private credit ecosystem.

APO proceeds to be used in upcoming investment deals

The St. Lucia-based company, which has only been in operation for less than four years, plans to use the proceeds of the APO for their upcoming deals valued around US$40 million ($5.7 billion), according to chief investment officer of the Sygnus Group, Jason Morris. This would be on top of SCI’s US$60.3 million credit portfolio, which has increased by 121 per cent in the last year, despite the COVID-19 pandemic hampering economic activity across the region.

Jason Morris,Sygnus Credit Investments Ltd’s executive vice president and chief investment officer

Morris has confirmed that SCI would be deploying capital to the British Virgin Islands along with the Eastern and Dutch Caribbean, which arose from the partnerships built over time. He revealed that SCI would be increasing its leverage and would possibly seek board permission to raise more debt for two to three deals based on the outstanding amount to be raised.

SCI has managed to thrive in the pandemic based on its first-quarter net profit which rocketed by 51 per cent to US$797,840 ($119.1 million) for September 30. The alternative investment company has continued to benefit from no realised credit losses on its private credit investments, a feat it has maintained since inception.

SCI key achievements

Even with the varying changes across the region, Morris indicated that SCI has utilised the expertise of the Sygnus Group to mitigate the changing regime in St. Lucia. Among the key achievements of SCI since it started operations three and a half years ago is its portfolio of investments surpassing the US$50-million threshold for the first time.

At the same time, SCI generated a record US$4.5 million in total investment income and US$1.97 million in net profits, which was 3.8 per cent less than the prior year record of US$2.05 million. Since its initial public offering in May 2018, SCI has returned US$3.8 million or 10.9 per cent of share capital to shareholders in the form of dividends.

In only two years, SCI has delivered on its promise to pay out up to 85 per cent of net income in dividends.

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