Massy Hold­ings Ltd yes­ter­day an­nounced a plan to take a US$150 mil­lion loan from the In­ter-Amer­i­can In­vest­ment Cor­po­ra­tion (IDB In­vest).

In a no­tice to the Trinidad and To­ba­go Stock Ex­change, Massy Hold­ings said its board of di­rec­tors has ap­proved a long-term fi­nanc­ing pack­age among the com­pa­ny, its whol­ly owned sub­sidiary, Massy In­te­grat­ed Re­tail Ltd and IDB In­vest.

In the no­tice, Massy Hold­ings said the fi­nanc­ing pack­age with IDB In­vest se­cures up to US$150 Mil­lion in long-term, un­se­cured fund­ing, struc­tured as draw­down-based fa­cil­i­ties, com­pris­ing:

• US$90 mil­lion in term fi­nanc­ing with a 10-year tenor, a 36-month grace pe­ri­od, and in­ter­est at SOFR plus 165bps or an equiv­a­lent fixed rate at the time of dis­burse­ment.

• The re­main­ing US$60 mil­lion of the fi­nan­cial pack­age will be in re­volv­ing sup­ply chain fi­nanc­ing, with an ini­tial five-year avail­abil­i­ty at in­ter­est of SOFR plus 110 bps.

The US$60 mil­lion fi­nanc­ing is be­ing struc­tured in two tranch­es:

• US$35 mil­lion com­mit­ted im­port fi­nance loan;

• US$25 mil­lion un­com­mit­ted fa­cil­i­ty for im­port fi­nance and ac­counts payable.

The Se­cured Overnight Fi­nanc­ing Rate (SOFR) is a broad mea­sure of the cost of bor­row­ing cash overnight col­lat­er­alised by Trea­sury se­cu­ri­ties. The SOFR rate on Mon­day was 4.35 per cent. That means the in­ter­est rate on the US$90 mil­lion fi­nanc­ing is about 6 per cent, while the rate on the US$60 mil­lion is about 5.45 per cent

The no­tice said, “This fi­nanc­ing en­hances bal­ance sheet flex­i­bil­i­ty and is ac­cre­tive to share­hold­er val­ue and shifts a large por­tion of the Group’s USD bor­row­ings from se­cured to un­se­cured, un­en­cum­ber­ing ap­prox­i­mate­ly US$50 mil­lion in as­sets.

“It al­so pro­vides long-term cap­i­tal to sup­port in­fra­struc­ture and cap­i­tal in­vest­ments in line with the group’s strate­gic growth plans.

“The fi­nanc­ing pack­age will be fi­nalised on Feb­ru­ary 7, 2025, with dis­burse­ment tar­get­ed for Feb­ru­ary 2025.”

Last Fri­day, Massy re­port­ed prof­it at­trib­ut­able to own­ers of the par­ent of $190.5 mil­lion for the three months end­ed De­cem­ber 31, 2024. That was 4.27 per cent more than the com­pa­ny owned in the com­pa­ra­ble pe­ri­od in 2023.

Massy’s rev­enue in the three-month pe­ri­od was $4.15 bil­lion, which was a 5.98 per cent in­crease over the com­pa­ra­ble quar­ter in 2023.

In the Massy chair­man’s state­ment on the first quar­ter re­sults, Robert Ri­ley said the per­for­mance “un­der­scores our abil­i­ty to dri­ve sus­tain­able growth while main­tain­ing strong fi­nan­cial dis­ci­pline.”

Ri­ley said the new cash gen­er­at­ed from the group’s op­er­a­tions surged by 227 per cent year-over-year, ris­ing from $164 mil­lion to $537 mil­lion, “re­flect­ing our con­tin­ued dis­ci­plined ap­proach to cas­hand work­ing cap­i­tal ef­fi­cien­cy.”