Hal Mann Vella Group plc - Details of New Bond Issue
On 8 October, Hal Mann Vella Group plc issued a formal notice in connection with the issue of €30 million Secured Bonds.
Details of the new Bond issue are available below.
Coupon:
5.0%
Amount Offered:
€30 million
Issue Price:
100.00% (par)
Interest Payment Date:
Annually on 6 November (the first interest payment date is 6 November 2015)
Maturity:
The bonds will mature at 100% (par) on 6 November 2024.
Security & Status:
Security:
The Bonds will be secured by a first-ranking special hypothec over the Hypothecated Property which comprises the Hal Mann factory, showroom and adjacent land measuring circa 22,300 square metres (owned by the Issuer) as well as a piece of land measuring 5,200 square metres and 50% of a warehouse complex (owned by the Guarantor Sudvel Ltd). The Hypothecated Property is located in the limits of Lija/Mosta and is valued at €27.5 million. Moreover, bondholders will be granted a first-ranking general hypothec over the remaining assets of the Issuer and Guarantor. As at 31 December 2013, the carrying value of all the assets of the Hal Mann Vella Group was €60.6 million.
Ranking:
The Bonds shall constitute the general, direct, unconditional and secured obligations of the Issuer, and shall rank pari passu between themselves, but with priority or preference over any other unsecured indebtedness of the Issuer.
Nonetheless, the Issuer may, from time to time, without the consent of the Bondholders, create and issue further debentures, debenture stock, bonds, loan notes, or any other debt securities provided that no issue may be made that would rank senior to the Bonds.
Use of Proceeds:
The net proceeds from the Bond issue, estimated at €29.3 million after issuance costs, will be principally used by the Issuer for the following purposes:
- the first €13.7 million will be used to refinance an equivalent amount of bank loans held by various subsidiaries of the Issuer;
- to finance the modernisation of the Hal Mann Vella factory and the investment in new plant and machinery (circa €5 million);
- to finance the construction and development of a mixed used commercial property over a land measuring 5,200 square metres situated in Pantar Street, Lija (circa €7 million);
- the balance will be used for general corporate funding purposes of the Group (circa €3.6 million)..
Deadline for Submission of Applications:
Placement: Thursday 23 October at 10.00 hrs.
General Public: Monday 27 October at 08.30 hrs.
Listing:
Official List of the Malta Stock Exchange
Disclaimer:
The value of investments may increase as well as decrease and past performance is not an indication of future performance. Prospective investors are urged to read the Risk Factors in the Prospectus. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.
Downloads:
Hal Mann Vella Group plc – Summary Note dated 6 October 2014
Hal Mann Vella Group plc – Registration Document dated 6 October 2014
Hal Mann Vella Group plc – Securities Note & Financial Analysis Summary dated 6 October 2014
Corporate Website:
This webpage has been prepared based on the Prospectus dated 6 October 2014 issued by Hal Mann Vella Group plc, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with regard to the accuracy of the data. This webpage is for information purposes only. It is not intended to be and should not be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.