With several deals and major acquisitions executed last year, Norbrook Equity Partners Limited (NEPL) successfully closed a private placement of US$17.5 million in debt and equity-linked securities as it looks to develop further latitude in its mission to acquire and develop well-positioned businesses in the Caribbean.

The St Lucia-based diversified investment holding company, which started its operations during the 2008 global recession, is moving its pieces into place as it aims to capitalise on the opportunities which have arisen from the novel coronavirus pandemic. Apart from funding additional acquisition opportunities, NEPL will use the proceeds to refinance part of its 2017 US$5.25 million capital raise, fund general working capital needs and significantly enhance its current portfolio of companies.

“Firstly, we are incredibly grateful for our financing partners as this investment is an appreciated vote of confidence in Norbrook and our business model. More importantly, this investment allows us to deepen our penetration of the Caribbean market, unlocking value from our existing businesses as well as our unique pipeline of opportunities nurtured during the pandemic period,” NEPL Executive Chairman Khary Robinson is quoted in a news release.

The financing was done under two separate arrangements with Sygnus Credit Investments Limited (SCI) and Stratus Alternative Funds SCC – Caribbean Mezzanine Fund II Limited (CMFII), an investment joint venture between NCB Capital Markets Limited (NCBCM) and Eppley Limited. Both alternative investment vehicles recently raised more than US$80 million in their mutual pursuit of providing more flexible capital to accelerate growth in the region.

CMFII and its co-investors provided US$12 million in traditional loans and quasi-equity financing to Norbrook, a major step for the company marking its first ever outside equity investment. Both NCBCM and Eppley have had a long-standing relationship with Norbrook and this investment is the culmination of years of partnership and growth.

“The Caribbean Mezzanine Fund has a distinguished track record of providing flexible funding to high-quality business looking for trusted and creative sources of capital. We are pleased to support Norbrook on their mission to building a group of strong, market-leading businesses in the Caribbean,” the release quotes Nicholas Scott, managing director of Eppley Limited, one of CMFII’s co-managers.

SCI is a leading regional private credit investor which also had a tenured relationship supporting Norbrook over the years. SCI injected an additional US$5.5 million into this round of financing for Norbrook in the form of convertible preference shares, continuing its history of actively supporting Norbrook and its subsidiaries.

“We are pleased to use our alternative investments capabilities — private credit, private equity or real estate financing — to partner with other alternative investors and traditional financiers alike to assist regional businesses such as Norbook to advance their growth strategy. This investment deepens our partnership, and using convertible preference shares was a natural next step as we have a long and proven track record of creating value through our collaborations,” said Dr Ike Johnson, executive vice-president and head of private equity, Sygnus Group.

Norbrook is a diversified investment holding company with several operating subsidiaries in the Caribbean, including Mailpac Group Limited, Hertz Jamaica, Express Fitness, Pure National Ice Company, SNB Creative Group (Starlight Productions and Blueprint Events), Norbrook Water Company (JamAgua); and Norbrook Transaction Services (ePay). Norbrook’s speciality has come down to finding value in the most opportune times with numerous mergers and acquisitions occurring in the pandemic.

Norbrook has built its portfolio of companies over the past decade through an aggressive mix of acquisitions and organic growth initiatives. Since 2010, the company has completed over 50 acquisitions in Jamaica, the United States, and West Africa. Today, the company has a keen focus on growing its portfolio in the Caribbean and Latin America.

“Over the years, we have established and refined our approach to creating value, but we were somewhat constrained because we only had access to traditional debt,” said Norbrook’s CEO Garth Pearce. “This financing provides us with a more optimal capital structure and greater financial flexibility to pursue a broader range of opportunities. We thank our finance partners for their continued demonstration of support.”