CUC raises $47.8M with rights offering

Caribbean Utilities Company has completed a rights offering, which invited existing shareholders to buy more shares of the utility provider, raising US$47.8 million.

The offering was announced in August, after the company issued 3,359,362 Class A ordinary shares at US$14.24 per share.

CUC said in a press release that it intends to use the proceeds to refinance existing debt and for general corporate purposes.

CUC now has 36,952,986 Class A ordinary shares outstanding.

Under the offering, eligible shareholders received one right for each share in the company they own, with 10 rights entitling the holder to purchase one share at the subscription price.

Fortis Energy Bermuda, a subsidiary of CUC’s controlling shareholder Fortis Inc., exercised the rights issued to it in the offering to acquire 1,946,032 shares.

In addition, Fortis Energy Bermuda bought another 797,871 shares, under a stand-by purchase agreement with CUC. The agreement required Fortis to acquire all the remaining shares not purchased under the rights issue at the subscription price.

Fortis Energy Bermuda now owns 60% of CUC’s issued and outstanding Class A ordinary shares on a non-diluted basis.

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