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Wednesday, June 23, 2021

Massy sells tech corporations for US$40m | Native Enterprise

T&T’s diversified holding firm, the Massy Group offered two expertise firms to Musson (Jamaica) Ltd final September for US$40 million, Caribbean Info and Credit score Ranking Companies (CariCRIS) reported on Monday.

Musson acquired Massy Applied sciences (Trinidad) (with operations in T&T, Barbados, Jamaica, and Antigua & Barbuda) in addition to Massy Applied sciences (Guyana) in September 2020, via a newly shaped wholly owned subsidiary, PBS Expertise Group Ltd (PBSTGL).

PBSTGL, which was integrated in St Lucia, as a personal restricted legal responsibility holding firm, is now one of many largest data expertise and communications suppliers within the Caribbean.

Final week, PBSTGL issued a secured, mounted price bond of as much as US$40 million by way of a personal placement. The proceeds of the bond can be used to repay exterior interim financing sourced to fund the acquisition from the Massy Group in September 2020.

The bond was issued in two tranches with the mixture quantity of each not exceeding US$40 million. The primary tranche matures on January 30, 2026, and pays an rate of interest of seven per cent. The second tranche additionally pays seven per cent and is listed to US {dollars}, however is issued within the Jamaican foreign money. Every tranche can be serviced via quarterly curiosity funds with principal being repaid by way of bullet funds at maturity.

In a information launch, CariCRIS assigned CariA (Native Foreign money Ranking) and CariA- (Overseas Foreign money Ranking) on its regional scale, jmAA+ (Native Foreign money Ranking) and jmAA (Overseas Foreign money Ranking) on the Jamaica nationwide scale, to the bond problem of as much as US$40 million of PBSTGL.

CariCRIS mentioned: “The regional scale rankings point out that the extent of creditworthiness of this proposed debt obligation, adjudged in relation to different obligations within the Caribbean is nice. The Jamaica nationwide scale score signifies that the extent of creditworthiness of the proposed debt obligation in comparison with different debt obligations in Jamaica is excessive.”

The rankings are supported by PBSTGL’s important aggressive benefits and powerful regional presence within the data and communications expertise (ICT) trade, mentioned CariCRIS.

“The acquisition of Massy Applied sciences (Trinidad) and Massy Applied sciences (Guyana) in September 2020 to type PBSTGL allowed the Musson Group to virtually double its funding within the ICT trade,” mentioned CariCRIS, including, “Previous to the acquisition, these firms had a historical past of steady monetary efficiency, good liquidity, wholesome capitalisation and powerful debt service protection ranges.

The regional score company mentioned the robust assist from Musson (Jamaica) Ltd additional helps the score. These rankings are tempered by the numerous sovereign danger publicity compounded by heightened financial uncertainty within the territories during which PBSTGL operates.

Musson (Jamaica) Ltd, which is the final word guardian firm of PBSTGL, has been in operation since 1962, in keeping with CariCRIS. It’s the successor to SP Musson Son & Firm Restricted which was initially based in 1820.

“It’s a diversified holding firm working in over 30 nations worldwide within the areas of distribution, manufacturing, agribusiness, data expertise and insurance coverage,” said CariCRIS in its rankings report. “Moreover, the Group owns controlling stakes in three publicly-listed firms on the Jamaica Inventory Trade, in addition to different non-public firms.” Musson owns 49 per cent of Seprod, 68 per cent of Productive Enterprise Options (PBS) and 80 per cent of Basic Accident Insurance coverage.

Elements that might result in an enchancment of the rankings and/ or Outlook embody:

• A rise in PAT of above ten per cent for 2 consecutive years.

• An enchancment within the sovereign danger profiles of the nations that the Firm operates in.

Elements that might result in a decreasing of the rankings and/ or Outlook embody:

• A higher than ten per cent decline in working income for 2 consecutive years.

• A decline in curiosity cowl to under two instances.

• A deterioration within the Firm’s debt/ TNW ratio to greater than two instances.

• A deterioration within the sovereign danger profiles of the nations that the Firm operates in.

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