Zodiac Caribbean is floating a new US$10-million bond that will be used to refinance existing debt at lower interest rates.
The bond is being backed by its shares in Supreme Ventures Limited, and will be issued in two tranches that will pay interest at 7.25 per cent and 7.75 per cent. They are structured to mature in July 2025 and July 2026, respectively.
Zodiac Caribbean Ventures Limited, based in Trinidad & Tobago and head by Nicholas Mouttet, is the largest shareholder in the Jamaican gaming and lottery company with a 30.3 per cent stake.
Mayberry Investments Limited is the lead arranger, broker and selling agent for the bond offer, but CEO Gary Peart declined to comment on the transaction. Peart is also the executive chairman of SVL.
Zodiac has pledged a portion of its SVL shares, equivalent to 150 per cent coverage of the debt, as security. The coverage will vary based on changes in the stock price over three months.
Zodiac holdings in SVL were valued at over $23 billion at market close on Monday. The bond being issued is the equivalent of $1.5 billion. It will refinance a US$8-million bond.
The Trinidadian company emerged as the largest owner of SVL in 2017 when it bought out the holdings of Greek gaming company Intralot Caribbean Ventures Limited. At the time, Zodiac raised US$40 million to finance the acquisition, a transaction that was also arranged by Mayberry.
The Jamaican brokerage is itself a top shareholder in SVL, holding at least a 18.4 per cent stake up to March via subsidiary Mayberry Jamaican Equities Limited.
