Wigton Windfarm Limited (“WIG”) has advised that the Caribbean Information and Credit Rating Services Limited (“CariCRIS”) has assigned the following initial ratings to the issue of restated bonds by WIG of up to J$5.8 billion:
- jmA (Local Currency Rating) on the Jamaica national scale, and
- CariBBB (Local Currency Rating) on the regional rating scale.
The national scale rating indicates that the level of creditworthiness of the debt obligation, adjudged in relation to other obligations in Jamaica is good. The regional scale rating indicates that the level of creditworthiness of the debt obligation, adjudged in relation to other obligations in the Caribbean is adequate.
CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is based on CariCRIS’s expectation of continuity in the key credit drivers supporting the ratings over the next twelve (12) to fifteen (15) months, with all debt service commitments expected to be paid in a timely manner over the period.
Further to our prior disclosure on January 19, 2022, WIG’s issuance is that of secured corporate bonds of up to J$5.8 billion in two (2) tranches. Tranche A is up to J$3.9 billion with a coupon rate of 6.3% with a tenure of 4.5 years and Tranche B is up to J$1.9 billion with a coupon rate of 7.25% with a tenure of 5 years. Principal and interest will be paid in quarterly installments for Tranche A, while interest will be paid quarterly and principal payment at the maturity date for Tranche B. The proceeds of the bond issue were used mainly to restate WIG’s existing bonds under more favourable financial terms.
The restatement of the bonds will result in savings in the finance expense of the Company of approximately $682 million over the lifetime of the Bonds.