Corinthia Finance plc - Details of New Bond Issue

Wednesday, February 29th, 2012

On 29 February, Corinthia Finance plc issued a Prospectus in connection with the issue of €7.5 million 6% bonds maturing between 2019 and 2022. Salient details of this new bond are available below.

Coupon:

6.0%

Amount Offered:

€7.5 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 29 March

Maturity:

The bonds will mature at 100% (par) on 29 March 2022 but may be redeemed early on any day falling between and including 30 March 2019 and 28 March 2022  by giving 30 days’ notice

Opening of Subscription Lists:

1 March 2012

Closing of Subscription Lists for Preferred Applicants:

16 March 2012

Closing of Subscription Lists for Other Applicants:

22 March 2012

Minimum application:

€10,000 and in multiples of €1,000 thereafter.

Listing:

Official List of the Malta Stock Exchange

Guarantor:

Corinthia Palace Hotel Company Limited

Use of Proceeds:

The net proceeds from the Bonds amounting to €7,375,000 will be advanced by Corinthia Finance plc to the Guarantor to be used for the Group’s general corporate funding purposes, including the redemption of the €14,644,885 (nom) 6.75% Corinthia Finance plc 2012 bonds due on 8 April 2012.

The remaining balance of Maturing Bonds shall be redeemed out of cash reserves specifically earmarked for the purpose of funding the redemption of Maturing Bonds and which amounts to 50% of the outstanding amount as at the date of the Prospectus. In the event that the Bond Issue is not fully subscribed by holders of the Maturing Bonds, the residual balance of Maturing Bonds will be funded from cash flows generated from the recent disposal of properties by CPHCL.

Status, Security & Ranking:

The Bonds are guaranteed by the Guarantor and constitute the general, direct, unconditional and unsecured obligations of the Issuer guaranteed by the Guarantor and shall at all times rank pari passu, without any priority or preference among themselves and with other guaranteed debt.

Downloads:

Corinthia Finance plc – Prospectus dated 27 February 2012

Should you be interested in obtaining a copy of our research note including our recommendation kindly send us an email on info@rizzofarrugia.com

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