Durrant Pate/Contributor

Sangster International Airport food and goods concessionaire, Express Catering Limited (ECL) is going to the equities market this week with a bond offer, seeing to raise upwards of US$12 million for debt repayment and capital expenditure. 

The Montego Bay-based company is coming to the market with a US$10 million bond issue with the option to upsize to US$12 million, which will mature in three years with a fixed interest rate of 8.50 per cent, per annum. The minimum subscription is US$100 and further increments of no less than US$100.

The bond offer will open on Friday (February 9) and is slated to close on March 8. The first interest payment date will be May 30. Interest will be due and payable on February 28, May 30, August 30,and November 30 in each year.

The final Interest payment date shall also be the maturity date. 

Use of proceeds

The company intends to use the proceeds to repay existing indebtedness and for capital expenditure. More specifically ECL will repay US$8.5 million owing to Sygnus Credit Investments while the remaining portion will be used for capital expenditure to complete the build-out of its food court the Sangster International Airport in Montego Bay. 

The company will also pay the expenses associated with the bond offer out of the proceeds, which it estimates will not exceed US$304,000 inclusive of general consumption tax (GCT). ECL generated annual revenues of US$21.2 million for the financial year ended May 31, 2023, representing an increase of 48.9 per cent from the US$14.2 million revenue generated for the previous financial year in 2022. 

During the first quarter results ended August 31, 2023 ECL generated its highest ever quarterly revenue amounting US$6.40 million. Those results have given the company the confidence that investing in capital expenditure is the right decision.

ECL was incorporated on June 26, 2001 with its main business being the operation of a variety of gift shops and food and beverage offerings in the post security checkpoint area at the Sangster International Airport in Montego. 

Its businesses at the airport include Air Margaritaville, Auntie Anne’s Pretzels, Bob Marley’s One Love Restaurant, Dairy Queen, Domino’s Pizza, Quiznos, Starbucks Coffee, Wendy’s Cinnabon, The Bars, Air Groovy Grouper Bar and Grill, Arrivals Bar, Connections Lounge, The Guitar Bar, Island Deli, Jamaican Bobsled Café and Viva Gourmet Market.

The company is a direct subsidiary of Margaritaville St. Lucia Limited, and an indirect subsidiary of Margaritaville Caribbean Group Limited, the ultimate holding company of the group.