Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange under the trading symbol "CUP.U"
GRAND CAYMAN, Cayman Islands, Aug. 18 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") (TSX: CUP.U) today announced that it has successfully completed its previously announced rights offering and related stand-by agreement (the "Offering"). Under the Offering, CUC raised gross proceeds of US$28,218,700 through the issue of 2,544,518 Class A Ordinary Shares at a price of US$11.09 per share. The Company intends to use the proceeds (after payment of the expenses of the Offering) to repay approximately US$18.5 million of indebtedness, and the balance will be used to finance capital projects. After giving effect to the Offering, CUC has an aggregate of 27,989,700 Class A Ordinary Shares outstanding.
Fortis Energy (Bermuda) Ltd. ("Fortis Bermuda"), an existing shareholder of CUC, purchased an aggregate of 2,156,148 Class A Ordinary Shares under the rights offering and a stand-by agreement with the Company. Fortis Bermuda now holds 15,721,659 Class A Ordinary Shares, representing approximately 56% of the outstanding Class A Ordinary Shares of CUC.
Richard Hew, President and Chief Executive Officer of CUC commented "We are pleased to have been able to complete this offering with the support of our existing Class A Ordinary shareholders, including the standby commitment made by Fortis Bermuda". He added, "This commitment by our shareholders provides the strong financial base necessary to carry out required capital investment plans. The proceeds of this offering will allow us to fulfill our obligations under our recently signed licences, by expanding capacity and sustaining reliability of electricity service in Grand Cayman.
CUC provides electricity to Grand Cayman, Cayman Islands, under an Electricity Generation Licence expiring in 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. Further information is available at www.cuc-cayman.com.
Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward-looking statements are based on underlying assumptions by their very nature and are subject to certain risks and uncertainties that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to general economic, market and business conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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