Facey Group to raise US$10m from investors
The Facey Group, one of the largest distribution outfits in the Caribbean, aims to raise US$10 million ($1.3 billion) from a bond to be issued next month.
The company said the bond, targeted at high net worth or accredited investors, will be sold in three tranches and that it may upsize the offer to US$12 million, at its discretion.
Tranche A offers US$3 million at 7.75 per cent; tranche B offers US$3 million at 8.6 per cent; and tranche C US$4 million at 8.7 per cent.
It's a tax-free bond based on the location of the Facey holding company based in Barbados, The Gleaner understands. Facey is a member of the Musson Jamaica Group, both chaired by Paul B. Scott.
Mayberry Investments will act as the broker to the deal. The offer defines accredited investors as individuals with net worth of $50 million or entities with net assets above $250 million.
Investors will make payment in Jamaican dollars and receive settlement payable in US dollars with conversion at the weighted average Bank of Jamaica selling rate on the date of the original issue, the term sheet indicated.
Repayment of principal and interest will be in US dollars, added the indicative term sheet.
The Gleaner sought clarity from Facey management on the plans for the bond proceeds, but got no key manager to respond to queries up to press time.
The company, which is privately held, has dealings in around 30 regional markets. Its current fundraising is dwarfed by a landmark US$182 million ($16.5 billion) loan secured from Scotiabank in 2012 for refinancing and working capital requirements. At the time, Facey said it was not in the habit of bragging about borrowing money.