TJH Set to Redeem up to 15% of its Pref Shares

• TransJamaican Highway Limited (TJH) is set to redeem up to 15% of its 8.0% JMD Cumulative Redeemable Preference Shares on January 22, 2026, following a 5% redemption in July 2025.
• The redemption is scheduled for the sixth anniversary of the preference shares’ issue date. This follows TJH’s earlier commitment to limit optional redemptions to a maximum of 15% this year of its preference share, originally issued in January 2020 for US$27Mn.
• Payment of the redemption amount will be made on January 30, 2026, to eligible Preference Shareholders through the Jamaica Central Securities Depository Limited (JCSD).
• TJH has the option, but not the obligation, to redeem up to 20% of the principal amount on the 6th, 7th, 8th and 9th anniversaries of the issue date, with interim redemptions being executed but limited to a maximum of 20% per anniversary year.
• Offering a fixed dividend of 8%, these preference shares are scheduled to mature over eight years by January 2028. An earlier redemption of the preference shares, however, frees up more cash for TJH to pay to its ordinary shareholders. Furthermore, the redemption reflects TJH’s ongoing deleveraging strategy, as reducing outstanding preference shares lowers the company’s fixed dividend commitments and strengthens its capital structure. By funding these redemptions within the limits set at issuance, TJH is using its improved cash flow and balance sheet capacity, given its robust operational performance, to gradually reduce higher-cost capital while maintaining financial flexibility.

(Sources: JSE and NCBCM Research)