TJH makes partial pref share redemption
TransJamaican Highway Limited (TJH) has begun to partially redeem its cumulative redeemable preference shares as it gears up for its next phase of growth.
The highway company recently redeemed five per cent of the principal amount of its 2.7 billion preference shares. That translated to 135 million preference shares or US$1.35 million assuming a US$0.01 par value. This partial redemption was paid on July 14 in conjunction with the quarterly dividend. TJH’s preference share has an 8.0 per cent dividend yield.
“Based on this schedule, the JCSD (Jamaica Central Securities Depository) submitted a redemption payment request for 5 per cent of the principal sum for June 30, 2025, which we promptly paid. This amount was distributed pro rata among all preference shareholders. While we have received no objections, we have since received a query regarding the matter,” TJH said in its JSE disclosure.
However, TJH has updated its redemption schedule to be in line with the original terms of the preference shares. As such, the company will adjust the maximum optional redemption amount on the preference shares to 15 per cent on January 30, 2026. This partial redemption will be done on a quarterly basis and paid in conjunction with the quarterly dividend.
TJH issued these preference shares in January 2020 for a value of US$27 million when it redeemed one preference share held by National Road Operating & Constructing Company (NROCC) prior to the offer for sale. NROCC sold these preference shares in July 2020 via a private placement and raised $3.59 billion. TJH listed these preference shares at $1.41 in September 2020. These preference shares are scheduled to mature over eight years by January 2028.
TJH has the right to partially redeem up to 20 per cent of the preference shares in issue after the sixth anniversary of the original issue date. TJH’s second quarter report (April to June) revealed that the carrying value of the preference shares was US$23.88 million with US$22.26 million as non-current.
An earlier redemption on the preference shares frees up more cash for TJH to pay to its ordinary shareholders. TJH will pay a $0.1292 dividend totalling $1.62 billion on October 24 to shareholders on record as of October 3. This brings the total dividend payments for the year to $0.255, a 35 per cent improvement on the $0.1895 paid in 2024. TJH’s first dividend as a listed company was $0.0748 in December 2020.
TJH has also updated its dividend payment structure to allow for USD ordinary shareholders to update the JCSD and receive their dividends in USD.
TJH is set to begin operating the phase 1C (May Pen, Clarendon to Williamsfield, Manchester) leg of Highway 2000 East-West in October as per an update by NROCC to the Jamaica Observer. NROCC is a Government entity that represents the Government of Jamaica’s interest in the major highway projects. NROCC also acts as the grantor of the concession to TJH which is the concessionaire. TJH Managing Director Ivan Anderson told shareholders at the company’s recent annual general meeting that the new leg should contribute an estimated US$9.5 million in revenue. This leg is set to be operated under new subsidiary TransJam Highway Operators Limited.
TJH generated US$82.82 million ($12.82 billion) in revenue during 2024 from its various toll plazas. For the six months period, TJH’s revenue increased 14 per cent to US$45.01 million ($7.16 billion) due to increased toll volumes from higher traffic across the four toll plazas. With minimal changes in operating expenses and finance costs, TJH’s profit before tax grew 30 per cent to US$24.06 million with net profit increasing 28 per cent to US$17.78 million ($2.83 billion).
TJH adjusted its toll rates at the four plazas on August 23 with the company offering class one and class two vehicles a discount with their T-Tag. TJH also updated its process to allow customers to get a T-Tag 24 hours a day, eliminating the need to visit a physical office.
TJH’s asset base stood at US$295.44 million with restricted cash at US$90.81 million and cash and cash equivalents at US$14.14 million. Total liabilities declined over the six months to US$222.45 million with its 2036 bond valued at US$189.48 million. Total equity closed the period at US$72.99 million.
TJH’s closing price on Tuesday was $4.05 which leaves the JMD share price down 13 per cent in 2025. The USD share price closed at US$0.0264 which leaves it down ten per cent in 2025. The TJH 8.0 preference share closed at $1.80 which is three per cent lower than it started 2025.