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BUSINESS GUARDIAN www.guardian.co.tt APRIL 2014 • WEEK TWO
Columbus International Inc---the cable, Internet and
fixed-line telephone company better known as Flow---
on Monday said in a release that its US$1.25 billion
fundraising exercise on the international bond market
On March 31 (2014), Columbus said it closed the issuance
of a US$1.25 billion offering of senior unsecured notes.
The notes were issued with a 7.375 per cent coupon,
priced at par and will mature in 2021.
Commenting on the transaction, Columbus founder
and chief executive officer Brendan Paddick said: "The
successful closing of this significant financing is a true
milestone in Columbus history. The markets have spoken
and have validated both Columbus vision and its business
plan. The six times oversubscribed deal built an order
book of close to US$8 billion, with demand from more
than 300 investors around the world.
"Columbus has attracted stable, world-class financial
sponsors, as we continue to aggressively expand and
invest in the Caribbean and Latin American marketplace.
Columbus is truly poised for future growth and continued
network investment, now with a proven track record of
repeated efficient access to the capital markets."
The transaction was led by Citigroup, JP Morgan and
RBC Capital Markets, acting as joint lead managers and
joint bookrunners. The bonds were sold following a road
show conducted by management from March 17 to 23,
the release said.
A portion of the proceeds of the offering was used to
retire US$640 million senior secured 11.5 per cent notes
that Columbus had issued in 2009, as well as its US$212
million senior unsecured 9.5 per cent notes, and to fund
make-whole fees on these two series of notes.
The balance of the net proceeds may be applied to pay
up to US$100 million in dividends, and for general cor-
porate purposes, including the funding of an acquisition
Columbus noted in the release: "The bonds were not
registered under the US Securities Act of 1933, as amended,
and were offered and sold by Columbus outside the US
under Regulation S, and in the US in a transaction exempt
from registration under the US Securities Act. The bonds
may not be offered or sold in the US absent registration
under, or an applicable exemption from, the registration
requirements of the US Securities Act of 1933, as amended."
An investment arm of the Dubai
government has bought a major stake
in Kerzner International Holdings, the
international hotel operator that man-
ages the Atlantis Paradise Island resort,
and has replaced the company s
founder and chairman, Sol Kerzner.
The move by the Investment Cor-
poration of Dubai (ICD) to buy the
stake from the family of the company s
founder and several institutional
investors, comes two years to the
month that Kerzner sold its flagship
properties---Atlantis Paradise Island
and Atlantis The Palm---to creditor
Brookfield Asset Management (BAM)
and partner Dubai World in a debt
A spokesperson for ICD declined to
comment when asked exactly what
stake the corporation had taken in
Kerzner International Holdings, which
is also part-owned by Goldman Sachs
and California-based Colony Capital.
However, it s been learned that the
shareholding is not a majority one,
and the Associated Press reported that
ICD would take a stake of 46 per cent.
With the completion of the buy-
out, Sol Kerzner, the visionary business
magnate behind the establishment of
Atlantis on Paradise Island, has been
replaced as chairman by CEO of ICD,
Mohammed Al Shaibani.
In an e-mailed response to the Nas-
sau Guardian, a Kerzner spokesperson
said the buy-out and departure of Sol
Kerzner from the company would not
alter its strategy in a way that would
impact its Bahamas operations.
Kerzner International Holdings con-
tinued as a resort management, devel-
opment and branding company
responsible for the management of
Atlantis and the One&Only Ocean
Club after it divested of these assets
"This does not alter our strategy led
by Alan Leibman (Kerzner International
Holdings CEO), Kerzner continues to
focus on positioning the business for
long-term, sustainable and global
growth through our asset-light busi-
ness model. We will continue to build
world-class, must-see entertainment
resort destinations and ultra-luxury
resorts and hotels in the most spec-
tacular locations and provide amazing
experiences for our guests."
In a statement issued, Leibman said:
"Kerzner is entering an exciting new
chapter in our business. We are happy
to have ICD as a major shareholder as
they recognize the value driven by the
world-class experiences and destina-
tions delivered by the Kerzner brands.
We look forward to their support as
we continue to execute on our global
Leibman described Sol Kerzner as
a man who "truly impacted the entire
world of hospitality and created the
entertainment destination resort con-
"Personally, he has been a great
mentor to me throughout my career.
I am looking forward to continuing to
grow the company that he founded
and take it to the next level with new
projects and developments around the
world," he added.
In a statement, Al Shaibani said the
investment in Kerzner International
Holdings comes on the back of Dubai s
push to boost its hotel and tourism
industry as the city prepares to host
the World Expo in 2020.
(Caribbean News Now)
Dubai acquires major
stake in operator of
iconic Bahamas resort
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