4 months ago
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Massy Holdings Limited has unveiled plans to raise up to TT$600 million (US$88 million) through a bond issue and loan, aimed at refinancing maturing debt.
“It is proposed that the closing date for the bond offering will be in April 2025, having received all regulatory approvals,” said Massy in a release to the market.
The amount represents some 20 per cent of the Trinidad & Tobago-based group’s US$411 million in total debt. The refinancing would also replace short-term bridge financing used to cover long-term debt that matured in 2024, thereby easing near-term repayment pressures.
“The above transactions will not result in any new borrowings for the company,” Massy said.
The loan and bond are being arranged by First Citizens Bank Limited.
Key details of the plan include a TT$300-million (US$44-million) fixed-rate bond with a 15-year tenor and a TT$300-million (US$44 million) loan spanning eight years. The bond will feature semi-annual interest payments and principal repayments after a five-year moratorium, while the loan will pay interest quarterly at a rate that will be reset annually.
First Citizens will act as the sole lead arranger for the private placement of the bond, targeting Trinidad & Tobago-based investors. Regulatory approvals are expected this month. Information on the offer will be issued by First Citizen for investors to make a determination on their participation in the bond, Massy said.
Massy’s total borrowing of TT$2.8 billion (US$412 million) against a capital base of TT$7.9 billion (US$1.16 billion) as of December 2024 reflects a conservative leverage position of 34 per cent, relative to recent years. During the COVID-19 pandemic and interest rate hikes in 2023, Massy’s debt levels surged to half of its capital, underscoring the volatility of external shocks.
The take-up of the private placement could hinge on market appetite for long-dated instruments amid fluctuating interest rates.
Massy Holdings holds assets in various countries, including Jamaica.
The regional company made TT$205 million profit for the December first quarter, which was four per cent better than the year prior. Its revenue grew six per cent to TT$4.16 billion in the period.
In its last financial year, ending September 2024, the group’s made profit of TT$712 million on revenue of TT$15.7 billion.
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