GRAND CAYMAN, Cayman Islands, May 29 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC") announced today the closing of the first tranche of a US$40 million private placement of 7.50% Senior Unsecured Notes due May 29, 2024. The first tranche was in the amount of US$30 million and the second tranche of US$10 million is scheduled to close in July 2009. The debt offering was privately placed with institutional investors in the United States. Proceeds from the offering will be used to repay short-term indebtedness and to finance ongoing additions and upgrades to CUC's generation and transmission and distribution system.
President and Chief Executive Officer, Richard Hew stated, "We are pleased to have been able to secure this additional financing on favourable terms at a time when many companies are unable to access growth capital." He added that "CUC's status as a publicly traded company with a strong debt rating helps secure access to efficient capital markets which enable us to sustain our commitment of over 40 years to reliable and efficient electrical service to Grand Cayman."
The notes will not be registered under the Securities Act of 1933 (the "Securities Act") as amended, nor will they be registered under any state securities laws. Unless so registered, the notes may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
CUC's Class A Ordinary Shares are listed in United States funds on the Toronto Stock Exchange (trading symbol: CUP.U).
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