Mon | Apr 22, 2019

GK to refinance loans for logistics centre

Published:Sunday | March 17, 2019 | 12:10 AM

Food and financials services conglomerate GraceKennedy Limited plans to raise up to $500 million in a refinancing deal.

The facility will replace a US dollar-denominated loan utilised to fund the build-out of its logistics centre in the United States, said Group CEO Don Wehby.

GK Capital Management Limited, a member of the GK group, will act as lead broker and arranger for the 36-month private placement, and Sagicor Bank will act as the registrar and payment agent.

The note, which will swap out USD borrowings for Jamaican currency debt, is expected to pay interest quarterly at a rate of 5.65 per cent per annum and mature in March 2022.

GraceKennedy will be investing $455 million in a logistics centre in New Jersey, United States, as one of several projects being rolled out in 2019 under a $3.7 billion capex programme.

steven.jackson@gleanejrm.com