Massy Hold­ings Lim­it­ed has an­nounced its in­ten­tion to is­sue a fixed-rate bond and se­cure a medi­um-term loan, each val­ued at up to TT$300 mil­lion, through First Cit­i­zens Bank Lim­it­ed (FCBL).

A no­tice post­ed on the T&T Stock Ex­change yes­ter­day stat­ed, “No­tice of in­tent by Massy Hold­ings Ltd through First Cit­i­zens Bank Lim­it­ed (FCBL), to is­sue a fixed rate bond in T&T not ex­ceed­ing the to­tal ag­gre­gate amount of three hun­dred mil­lion T&T dol­lars (TT$300,000,000) and ac­cess a medi­um-term loan not ex­ceed­ing the to­tal ag­gre­gate amount of three hun­dred mil­lion T&T dol­lars (TT$300,000,000).”

Massy ex­plained that all of the pro­ceeds of the bond and the loan are in­tend­ed to be utilised by the com­pa­ny to re­fi­nance ex­ist­ing long-term debt which ma­tured in 2024 and was re­fi­nanced us­ing short-term

bridge fi­nanc­ing (bridge fi­nanc­ing is a short-term loan used to bridge the gap be­tween im­me­di­ate fi­nanc­ing needs and long-term fund­ing so­lu­tions).

The no­tice added that the trans­ac­tions would not re­sult in any new bor­row­ings for the com­pa­ny.

It al­so out­lined that the com­pa­ny and FCBL mu­tu­al­ly agreed to the com­mer­cial terms for the is­sue of the bond and the loan.

Pur­suant to bind­ing terms ap­proved by the par­ties, FCBL, as the sole lead arranger, agreed to arrange the bond of­fer­ing on a pri­vate place­ment ba­sis, to po­ten­tial in­vestors in T&T for the prin­ci­pal amount, the no­tice al­so stat­ed.

The bond would be is­sued in one se­ries and would car­ry a tenor of 15 years.

In­ter­est on the bond would be fixed and paid on a se­mi-an­nu­al ba­sis in ar­rears com­menc­ing six months af­ter is­suance.

The prin­ci­pal due on the bond would be re­paid via equal se­mi-an­nu­al pay­ments fol­low­ing a five-year mora­to­ri­um.

The loan would car­ry a tenor of eight years and in­ter­est on the loan would be an­nu­al­ly re­set and paid on a quar­ter­ly ba­sis com­menc­ing three months af­ter clos­ing.

The no­tice stat­ed that FCBL would pro­vide po­ten­tial in­vestors with such in­for­ma­tion re­lat­ing both to the com­pa­ny and the bond of­fer­ing as may be re­quired for them to make an in­formed de­ci­sion on whether or not to par­tic­i­pate in the bond of­fer­ing.

It is pro­posed that the clos­ing date for the bond of­fer­ing would be in April 2025 hav­ing re­ceived all reg­u­la­to­ry ap­provals.