Caribbean Utilities Company, Ltd. Announces Closing of First US$30 Million Tranche of Aggregate US$40 Million Private Placement of Senior Unsecured Notes

GRAND CAYMAN, CAYMAN ISLANDS, June 1, 2011 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC") announced today the closing of the first tranche in the amount of US$30 million of an aggregate US$40 million private placement of US$15 million 4.85% Senior Unsecured Notes due June 1, 2026 (the "4.85% Notes") and US$25 million 5.10% Senior Unsecured Notes due June 1, 2031 (the "5.10% Notes").  US$11.25 million of the 4.85% Notes and US$18.75 million of the 5.10% Notes closed today.

The second tranche of US$10 million is scheduled to close in July 2011.  The debt offering was privately placed with institutional investors in the United States with RBC Capital Markets acting as placement agent. 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 secure this financing on favourable terms, a reflection of the stability of the company."  He added that "CUC's strong credit ratings help secure access to efficient capital markets.  Significant capital investments are necessary to sustain a reliable electricity service to Grand Cayman which CUC has remained committed to for over 45 years."

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).

SOURCE Caribbean Utilities Company, Ltd.

For further information:

Letitia Lawrence
Vice President, Finance and Chief Financial Officer
Phone:  (345) 914-1124
E-Mail: llawrence@cuc.ky


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