4 months ago
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Specialty Coffee Company bondholders have rejected calls to extend the bond for another year.
Instead they voted to end the bond, issued by by a coffee investment company connected to investor Michael Lee-Chin, and receive their principal payments.
“The issuer is expected to pay out the investors,” said Andrea Kelly, general manager of JCSD Trustee Services Limited.
Specialty Coffee wanted to extend repayment to October 2025, according to correspondence issued by JCSD to the coffee company’s creditors and seen by the Financial Gleaner. It would have been the second extension of the bond, which was set to mature last December. Bondholders had previously agreed to an extension to April of this year, but said to a second extension at a recent meeting.
Kelly said the bondholders voted 39.5 per cent against the and 26.3 per cent in favour of an extension.
“Once the investors do not approve the extension, payment is due immediately,” said Kelly.
Bondholders, however, are still awaiting payment.
“I am happy to get back my principal as I need the funds to complete a property purchase,” said a bondholder, who asked to remain nameless.
In 2021, Specialty Coffee issued a bond to refinance $1.9 billion in debt, split between a local currency bond of up to $500 million at 9.75 per cent interest and a US$8.7 million tranche at 7.25 per cent interest. This replaced the original bonds from 2016, which raised $1.8 billion at 9.5 per cent interest, used for acquiring Mavis Bank Coffee Factory for $1.3 billion and meeting working capital needs.
Lee-Chin’s coffee assets include Wallendford Estate and Mavis Bank Coffee. In 2016, Specialty Coffee acquired Mavis Bank from Jamaica Producers Group and Pan-Jamaican Investment Trust.
Mavis Bank, a major producer of Jamaica Blue Mountain coffee, has been operational for over 90 years, maintaining strong trading relationships with Asia, Europe, and North America. The factory’s green beans carry its name, while roasted beans are branded as Jablum.
English (US) ·