Cherry Hill seeks US$10m in debt refinancing
Published:Wednesday | November 6, 2019 | 12:16 AM
Cherry Hill Developments Limited, a real estate company affiliated with both Mayberry Investments and the Musson Group, plans to raise up to US$10 million through a bond bearing interest of eight per cent per annum.
The unsecured notes, which will be sold in two tranches, will mature in 2022, or 30 months after being issued.
The date for the offer is yet to be determined by Cherry Hill Developments.
For the first tranche of the bond, Cherry Hill will issue unsecured notes in the Jamaican dollar equivalent of US$8 million; the second tranches is for up to US$2 million. The company has indicated that the instruments will be priced in line with the weighted average of the US currency two days before the issue date.
Cherry Hill’s offer document for the Tranche A notes said proceeds from the private placement will be used to refinance debt and as working capital for the company.
The offer is being brokered by Mayberry Investments Limited, whose executives were not reached for comment. JCSD Trustee Services is named as trustee and paying agent.
Chairman and CEO of Musson Group, Paul B. Scott, told the Financial Gleaner that Cherry Hill was refinancing an existing note.
“We refinancing are replacing one note with another. What we are going to do is develop the property down the road,” Scott said.
The development company is registered in St Lucia but operates from 53 Newport Boulevard, Newport West, in Kingston. Its directors are Mayberry Investments CEO Gary Peart; P.B. Scott, and real estate agent Samuel Catling, according to Companies Office of Jamaica records.