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
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:
Vice President, Finance and Chief Financial Officer
Phone: (345) 914-1124