Derrimon raises $250 million via bond for debt reduction

Wednesday, May 31, 2017

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Derrimon Trading Ltd, in an effort to refinance its current US dollar debt, recently closed a bond issue valued at $250 million.In a release yesterday, the company indicated that the secured note, which was structured and brokered by Mayberry Investments Ltd, was privately issued under exempt distribution guidelines. It is tenured at 24 months and offers a coupon of 10.25 per cent per annum.

In comments on the new issue, Chairman and CEO Derrick Cotterell spoke about the company's “continuing efforts to maximise its potential. We continue to seek opportunities to grow our operations and with our financial partners, Mayberry Investments, we are working to find the best financial solutions in the short, medium and long term.”

The new issue follows a preference share offer in 2015.

Derrimon Trading Ltd in February 2017 acquired a 75.02 per cent ownership stake in fellow Junior Market- listed company Caribbean Flavours and Fragrances Ltd.

It also expanded its retail footprint under the Sampars brand to seven locations island-wide and launched a second grocery chain under the Select Grocers which was open in March 2017.

Listed on the Junior Market of the Jamaica Stock Exchange, its stock price has quadrupled since its opening price of $2.05 per share, closing at $8.75 per share on May 30.

Derrimon Trading are operator of the Sampars outlets, which offers customers the ability to place orders online.

Yesterday the company indicated it has added to its distribution portfolio with lines including Nestle, Supligen, Golden Brand and Sun Detergent out of Suriname, Linstead Market, Blue Power Home Choice, and its in house Delect Brand.

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