Express Catering targets US$12 million in bond offering Loop Jamaica

The content originally appeared on: Jamaica News Loop News

Express Catering Limited, the operator of a chain of restaurants within Sangster International Airport, plans to raise up to US$12 million through a bond offer.

The offer period spans from February 9 to March 8, with Mayberry Investments serving as the lead broker. 

Express Catering aims to list the bond on the Jamaica Stock Exchange (JSE), which houses various equity trading platforms, including one for bonds.

The bond has a three-year term with an annual interest rate of 8.5 per cent. The funds raised will be utilised to settle existing debts and finance capital expenditures.

Specifically, Express Catering plans to repay US$8.5 million owed to Sygnus Credit Investments Limited. Additionally, the capital expenditure will go towards completing the buildout of the food court. 

The company also intends to cover the expenses related to the invitation using the proceeds, with estimated costs totalling under US$304,000, inclusive of general consumption tax.

Founded in June 2001 by CEO Ian Dear, Express Catering initially focused on operating small shops, then expanded in a significant way in 2011 when it got the contract to operate all the food and beverage outlets in the post-security section of the airport based in Montego Bay.

In 2023, the airport witnessed a 19.6 per cent increase in total passengers, reaching approximately 5.27 million.

As of November 2023, Express Catering boasts capital of US$7.07 million, a notable rise from the previous year’s US$4.2 million. This capital comprises US$44.16 billion in assets and US$37.09 million in liabilities.