Mayberry Investments to redeem $2b bond

Mayberry Investments Limited has notified bondholders that it will redeem the full principal balance and all accrued interest on its 10.75% secured bond on March 19, the company disclosed in a notice to the Jamaica Stock Exchange.

The bond – Tranche II of the Mayberry Secured Bond programme, listed under the ticker MIL10.75FR2026 — carries a face value of some $2 billion and matures on March 19, 2026. The company has requested that the JSE suspend trading of the instrument on the maturity date, with all principal and accrued interest to be settled within seven days of receiving the final listing of bondholders as at the record date.

Mayberry Investments is the securities dealer arm of the wider Mayberry group, one of Jamaica’s most prominent financial services conglomerates. The group’s interests span stockbroking, investment banking, portfolio management and venture capital, and it counts among its most visible holdings a significant stake in pan-regional financial institution Barita Investments. The group is led by Chairman Christopher Berry.

The 10.75% coupon – fixed rate at issuance – reflected the higher interest rate environment prevailing when the bond was structured, and the redemption at par will return capital to a bondholder base that includes both institutional and retail investors on the JSE’s bond market.

The company gave no indication in the notice of plans for a successor instrument, saying only that bondholders requiring additional information should make contact directly.

The redemption, if completed on schedule, would remove the bond from JSE listings by the final week of March.

business@gleanerjm.com