Carib Cement partially redeems shares issued to TCL

Thursday, December 27, 2018

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Caribbean Cement Company Limited (CCC) has partially redeemed preference shares held by Trinidad Cement Limited (TCL) which were issued in 2010 by CCC.

The disclosure, which was published on the Jamaica Stock Exchange on Monday, noted that on December 21, 2018, CCC redeemed 3,928,603 preference shares out of the 15,000,000 total preference shares CCC had issued to TCL in 2010.

The total amount of the consideration paid by CCC to TCL for this partial redemption is of US $3,059,780 million. The cement manufacturer added that after this partial redemption, TCL will still hold an aggregate number of 48,071,397 preference shares of CCC.

TCL and CCC agreed into a Memorandum of Understanding dated March 16, 2018, and on July 6, 2018, entered into a preference share redemption agreement for an aggregate number of 52 million preference shares that are held by TCL that were issued by CCC in 2010 and 2013.

Pursuant to the redemption agreement, the aggregate amount of consideration expected to be paid by CCC to TCL from 2018 to 2026 or, if necessary, beyond 2026, is approximately US$405 million, of which US$3,059,780 will be paid on December 27, 2018.

Earlier this month, CCC and one of its subsidiaries entered into an agreement with National Commercial Bank Jamaica Limited for an unsecured revolving loan facility valued at J$3,076,000,000, which was made available in US Dollars.

The term is five years, while interest rate will be at a fixed rate of 7.45 per cent per annum.

CCC further advised that the proceeds from the loan facility were received by CCC on November 30, 2018, and will be used to pay related party debt denominated in US dollars, diversifying the sources of funds for CCC. Throughout its term, the loan will also be used for general corporate purposes, reports CCC.

Jamaica Gypsum and Quarries Limited, a subsidiary of CCC, has also entered into the loan facility as borrower .


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