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Scotia Investments leads $1.4 billion refinancing for T Geddes Grant Loop Jamaica

Scotia Investments Jamaica Limited (SIJL) recently acted as lead arranger to successfully refinance $1.4 billion of maturing debt for T Geddes Grant, one of Jamaica’s leading food, pharmaceutical, consumer and agricultural distributors.

Being a distributor of world-class products, T. Geddes Grant proved its resilience during COVID and experienced strong growth across its divisions.

During this time, they expanded existing distribution relationships with key clients such as Nestle, becoming its largest sub-distributor on the island by 2021.

The company also became a major player in the distribution of sugar and added new beverage brands such as Fruta and Kool Kids.

Scotia Investments was the arranger for the maturing debt which was originally issued as notes in the private market under the Financial Services Commission Exempt Distribution Guidelines for “Accredited Investors” and “Minimum Purchase Amount”.

Commenting on the transaction, Sarah Cumming, VP and Head of Capital Markets Scotia Investments, said: “We engaged with T Geddes in May to strategize and agree on the approach for the refinance. Within the context of rising interest rates and market liquidity considerations, we anticipated the need to consult with both existing and new investors and considered both a fixed rate and a variable rate structure in order to achieve a successful outcome.”

She added: “From a capital markets perspective, we are encouraged by the level of interest in the security, which is indicative of the market’s appetite for strong issuers with a proven track record.”

T. Geddes Grant Managing Director, Michael Subratie

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Meanwhile, T. Geddes Grant Managing Director, Michael Subratie, said the strategic refinancing of this debt means the company can continue to improve its competitiveness by investing in infrastructure, marketing and capacity-building.

“This will not only support organic growth but allow us to attract new business. T Geddes Grant is pleased to have partnered with the SIJL team once again, who seamlessly executed the transaction end to end.”

He also said T Geddes Grant would continue to focus on growth across all product lines it distributes across consumer, pharmaceutical, office equipment, and agricultural groups.