JMMB offers sweetener to extend maturity of two 2018 preference shares classes from 2025 to 2032
JMMB Limited has applied to suspend trading two 2018 preference share tranches at end of trading day on February 18th, 2025, until end of trading day on March 6, 2025, to facilitate payments.
These are Cumulative Redeemable 5.50 per cent USD Preference Shares 2018 and Cumulative Redeemable 7.00 per cent Variable Rate JMD Preference Shares 2018. These will be paid out on March 6, 2025.
Meanwhile, the company has secured permission of shareholders (a 75 per cent super majority) to extend the tenure of another two classes of prefs.
On January 30th, 2025, the JMMBs Board authorised the convening of a separate general meetings of the holders of Cumulative Redeemable 5.75 per cent USD Preference Shares and Cumulative Redeemable 7.25 per cent Variable Rate JMD Preference Shares for the purpose of seeking their consent to the variation of the terms.
For the USD 5,75 prefs, these have been varied from 5.75 per cent per annum (fixed) to 7.50 per cent per annum (fixed). The maturity date varied from March 6, 2025, to March 6, 2031.
For the JMD 7.25 per cent prefs, the coupon is currently determined by reference to the most recent of the GOJ’s 180-day Weighted Average Treasury Bill Yield (WATBY) plus 1.50 per cent per annum to be reset annually on March 6 of each year.
The proposed variation provides for a rate of 10 per cent per annum fixed for a year after March 6, 2025, and thereafter, for the rate to be determined by reference to the most recent of the GOJ’s 180-day Weighted Average Treasury Bill Yield (WATBY) plus 2.50 per cent per annum to be reset annually on March 6 each year until maturity, subject to a floor of 6 per cent per annum.
For the 7.25 prefs, the maturity date has been varied from March 6, 2025, to March 5, 2032.
In 2018 a week-long JMMB Group Limited (JMMBGL) Preference Share Offer, which closed on Wednesday, March 7, 2018, raised J$9.28 billion in total; almost tripling, the company’s initial target of approximately J$3.2 billion.
JMMBGL offered four simultaneous tranches of cumulative redeemable preference shares, with a US$ and J$ option, which matured in 2025 – although the company reserves the right for an optional redemption of all.
The offer formed a part of the Group’s capital management strategy and was slated to support continued expansion in the territories in which it operates.
The JMMB Group Jamaican-dollar Cumulative Redeemable Preference Share was offered at a rate of 7.25 per cent, variable rate for JMMB Group clients and 7.00 per cent, variable rate, for non-clients.
The US dollar-denominated Cumulative Preference Shares were fixed at 5.75 per cent and 5.50 per cent, for clients and non-clients, respectively.
The first dividend payment for the two classes of the JMD variable rate preference shares started on April 6, 2018, and thereafter, dividends were paid the 6th day of each month, or the next business day, at the respective rates offered to clients and non-clients.
In the case of the USD preference shares, dividends were paid quarterly, starting , beginning June 2018 – until maturity.
All tranches of the preference share offer were sold at a fixed price of $2.00 per share, in the respective currencies. JMMB Group listed both offerings on the Jamaica Stock Exchange (JSE) to list , to facilitate the trading.
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