SYGNUS CREDIT INVESTMENTS PREFERENCE SHARE OFFER 102 PER CENT OVERSUBSCRIBED, RAISING J$8B
(Castries, Saint Lucia)
Sygnus Credit Investments Limited (“SCI” or the “Company”), a Caribbean leader in private credit, raised a record J$8.0 billion equivalent (J$1.6 billion and US$40 million at 160:1 JMD/USD exchange rate) from its public offering of JMD and USD preference shares, resulting in the offer being oversubscribed by 102%. The Company received 3,214 orders that amounted to J$1.7 billion and US$40.3 million respectively for the multi-tranche dual-currency cumulative redeemable preference shares (the “Preference Shares” or the “Offer”).
Sygnus Capital Limited, the lead arranger for the SCI Preference Share Offer, is a licensed securities dealer in Jamaica with the Financial Services Commission and focuses on providing clients with independent Investment Banking and Investment Advisory Services. The Sygnus Capital Investment Banking team was intentional in structuring the SCI Preference Share offer across three classes and was originally set to raise J$800 million and US$20 million for the JMD and USD preference share classes respectively. The SCI Offer, which opened on Monday, November 20, 2023, received substantial demand from investors and was oversubscribed within the first week. This strong response prompted a subsequent request and approval for an extension of the closing date to Friday, December 15, and upsizing of the offer by 100%.
“We are very pleased to lead such a landmark transaction for SCI, the largest raise since its inception” said Gregory Samuels, Senior Vice President and Head of Investment Banking at Sygnus Capital. He continued, “We were very deliberate in structuring the preference shares in three classes to give investors the option to participate in the share class that best fits their investment horizon and criteria and to give SCI the opportunity to diversify its funding mixed across two currencies and varied maturities. This we believe was a win-win scenario for both SCI the Issuer and the investors who participated in the Offer”.
The Offer had three classes of preference shares all of which were oversubscribed. The 10.5% Class C JMD preference shares were oversubscribed by 109%, and all applicants were allotted the first 250,000 shares and 71% of the amounts in excess of 250,000 shares. The 8.0% Class D USD preference shares were oversubscribed by 68% and all applicants were allotted 100% of the amount applied for. The 8.5% Class E USD preference shares were oversubscribed by 136% and all applicants were allotted the first 25,000 shares and 67% of the amounts in excess of the 25,000 shares.
Jason Morris, Chief Investment Officer and Executive Vice President at Sygnus, expressed his appreciation, stating, “This public offering of preference shares was the single largest capital raise in the history of SCI and for any private credit company in the Caribbean region. Simply put, investors had an amazing response to the Offer and we truly appreciate their confidence in the Company’s alternative investment business model and strategic vision. This outcome is aligned with shifting investor appetite towards a larger alternative investment allocation seen in more developed markets, and we are humbled to be part of this story. We appreciate the excellent execution of our lead broker on the transaction, JMMB Group Capital Markets, who were exemplary in tapping more than 3,000 orders from investors in less than four weeks to successfully close the deal. Since the launch of the capital raise, our pipeline of Jamaican investment opportunities has increased substantially, as we won a number of new investment mandates from Portfolio Companies. We remain committed to being a leader in expanding the private credit channel as a substantive source of flexible debt capital for Caribbean businesses and investment projects.”
SCI’s diverse investment approach encompasses deploying capital to various industries, including manufacturing, distribution, financial services, energy, industrial, construction, transportation, infrastructure, and business services.
Karl Townsend, Chief Country Officer (Jamaica), JMMB Group Capital Markets unit notes, “JMMB is proud to continue to support companies, like Sygnus Credit (SCI) Investment Ltd., in raising capital on the stock market to carry out their strategic growth objectives and by extension provide a win-win opportunity for all stakeholders. The response from investors for the SCI preference share offer has been overwhelming as evidenced by the oversubscription, even as the offer was upsized. This underscores the value that investors see in this offer for wealth creation, diversifying their portfolios, providing cash flow and the belief in the long-term vision of this company. Adding, “As lead broker on this offer, we are pleased that we were able to leverage our extensive network, solid expertise and innovative online platform, including the newly launched JMMB Moneyline IPO platform that allows investors, who are not JMMB clients, to take advantage of this opportunity seamlessly.”
An application for listing on the Jamaica Stock Exchange is expected to be completed in January 2024.
Sygnus is a leading alternative investment management company in the Caribbean and Latin America, spanning private credit, real estate, and private equity. Sygnus manages Sygnus Credit Investments Limited (SCI) which is listed on the JSE and the largest Private Credit Investment company in the English-Speaking Caribbean. SCI is a pioneering private credit investment company, which offers creative debt financing to middle market businesses across the Caribbean. Sygnus Real Estate Finance Limited (SRF) provides flexible capital (Debt or Equity) to all classes of real estate assets (commercial, industrial, or residential). Sygnus Deneb Investments Limited (SDI) invests private equity capital in companies in the form of growth capital, buyouts, and turnarounds. The Sygnus Group also includes Acrecent Financial Corporation in Puerto Rico, a non-bank financial institution that provides asset-backed loans and leases to SMEs in Puerto Rico. Sygnus also offers its clients Investment Banking and Wealth Advisory.
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