Caribbean Cement Company Secures JA$3B Revolving Loan Facility From National Commercial Bank Jamaica
Caribbean Cement Company Ltd. (CCC) and one of its subsidiaries, Jamaica Gypsum and Quarries Limited have entered into a revolving loan facility with National Commercial Bank Jamaica Limited as lender for a principal amount of $3 Billion Jamaican Dollars, which will be made available in United States Dollars.
The proceeds from the Loan Facility received by CCC on November 30, 2018 will be used to pay related party debt denominated in United States Dollars, and is aimed at diversifying the sources of funds for CCC.
The Loan Facility will also be used for general corporate purposes, reports CCC.
The unsecured revolving loan facility is for a principal sum of $3 Billion over five years at a fixed interest rate of 7.45% per annum
Jamaica Gypsum and Quarries Limited, a subsidiary of CCC, has also entered into the Loan Facility as borrower.
In what may be a related matter Caribbean Cement had reported in unaudited consolidated financial report for the nine months ended September 30, 2018 a 37 % reduction in profit before taxation compared to the same period in 2017, which was impacted by foreign exchange losses of JA$464 million and interest payments of JA$227 million.
Both are related to loans received to finance the acquisition of Kiln 5 and Mill 5.
The acquisition of Kiln 5 and Mill 5, was from parent company Trinidad Cement Limited (TCL) and the termination of the equipment lease, concluded in April 2018.
This JA$14.9 billion deal represented a significant investment in plant and equipment, and improved the Company’s asset base and financial results.
During the reported quarter, there was also a negative movement in the net cash generated by operating activities of JA$1.8 billion.
This was primarily due to the payment made to TCL for the balance that was owing on the acquisition of Kiln 5 and Mill 5 of JA$ 1.9 billion.