Mayberry upsizes bond to $14M after hitting target early
What's the deal? Mayberry Jamaican Equities (MJE)Dealroom has a profile for this one. Try Dealroom → has increased its secured bond offer to a maximum of 2.25 billion JMD (roughly $14 million) after investors took up the original 1.5-billion-JMD target ahead of schedule. The listed Jamaican investment company's board exercised an upsize option in its August prospectus following excess demand for the 36-month bond.
Why now? The offer was originally set to close on September 10 but hit its target early, prompting MJE to extend the deadline to September 24 at 16:30 EST — though it retains the right to close sooner. The three-year bond carries a fixed 9.50% annual rate, paid quarterly, with a minimum subscription of 20,000 JMD.
What's the endgame? The funds form part of a broader refinancing. Proceeds will primarily repay about 1.4 billion JMD in debt, including an 8.75% secured bond tranche due October 2026, a 10% tranche due in August, and part of a revolving margin loan facility.
What could go wrong? The 9.50% rate sits between the two tranches being refinanced, and the prospectus does not break out individual balances or the margin facility's cost — making it hard to tell whether the deal lowers MJE's overall borrowing cost.
The bond is secured by a portfolio of listed shares, valued at about 3.55 billion JMD at June 30 prices, including holdings in Supreme VenturesDealroom has a profile for this one. Try Dealroom →, Dolla Financial ServicesDealroom has a profile for this one. Try Dealroom →, JMMB GroupDealroom has a profile for this one. Try Dealroom →, GraceKennedyDealroom has a profile for this one. Try Dealroom →, and NCB Financial GroupDealroom has a profile for this one. Try Dealroom →. That collateral covers roughly 158% of a fully upsized issue, above the 150% covenant minimum — but coverage moves with share prices.
What they're saying: "The response to this offer speaks to the confidence investors continue to place in Mayberry Jamaican Equities and in Mayberry Investments LimitedDealroom has a profile for this one. Try Dealroom → as lead broker," Mayberry Investments chief executive officer Patrick Bataille said.
The signal: A target met ahead of schedule gave MJE room to enlarge the raise quickly and refinance on the same terms. The new securities will list on the Jamaica Stock ExchangeDealroom has a profile for this one. Try Dealroom →'s Bond Market.
Read more: jamaicaobserver.com
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