CUC closes 2nd notes deal

(CNS): Local power provider, Caribbean Utilities Company (CUC) has announced the closing of the second tranche of a US$40 million private placement of 7.5% Senior Unsecured Notes due May 29, 2024. The first tranche, which closed May 29, 2009, was in the amount of US$30 million and the second which closed on 10 July, is in the amount of US$10 million. The debt offering was privately placed with institutional investors in the United States and proceeds will be used to finance ongoing additions to CUC’s generation capacity and transmission and distribution system.

The firm said 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.

The announcement comes in the wake of the publication of a report by the Auditor General’s office which was written in 2003 and raised concerns about the firm’s excessive over build and capital investment which the office described as ‘gold platting’.

CUC provides electricity to Grand Cayman, Cayman Islands, under an Electricity Generation Licence expiring in 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. Further information is available at www.cuc-cayman.com