Island Hotels Group Holdings plc - Details of New Bond Issue

Thursday, May 8th, 2014

On 8 May, Island Hotels Group Holdings plc issued a formal notice in connection with the issue of €35 million Bonds. Rizzo, Farrugia & Co. (Stockbrokers) Ltd has entered into a placement agreement with Island Hotels Group Holdings plc for an amount of €5 million Bonds which are available for subscription by its clients.

Details of the new Bond issue are available below.

Coupon:

6.0%

Amount Offered:

€35 million

Issue Price:

100.00% (par)

Interest Payment Date:

Annually on 15 May

Maturity:

The bonds will mature at 100% (par) on 15 May 2024.

Status:

The Bonds constitute the general, direct, unconditional, unsubordinated and unsecured obligations of the Issuer and shall at all times rank equally and rateably without any priority or preference among themselves and with other unsubordinated or unsecured debt.

The indebtedness of the Group includes bank loans, corporate bonds and other borrowings from related companies. Bank borrowings are secured by present and future assets including hotel properties and therefore the indebtedness being created by the new bond issue, together with that of the current bond in issue, ranks after the bank borrowings. In addition, the Bonds would also rank after any future debts which are privileged or otherwise secured.

Use of Proceeds:

The net proceeds from the Bond issue, estimated at €34.35 million after issuance costs, will be principally used by the Issuer in the following order of priority:

i) to on-lend circa €16 million to Bay Point Hotel Limited, a fully-owned indirect subsidiary of the Issuer, to carry out refurbishment works as well as construction and finishing works of two additional floors and a conference centre;

ii) to finance the development and operation of the COSTA® Coffee brand in the East Coast of Spain, the Balearic Islands and the Canary Islands (circa €4 million);

iii) the remaining balance of the net proceeds from the Bond Issue will be used for general corporate funding purposes, including the early repayment of some bank loans and in particular the reduction in the Group’s overdraft balance.

Deadline for Submission of Applications:

Placement: Friday 23 May at 10.00 hrs.

Shareholders: Friday 23 May at 10.00 hrs.

General Public: Friday 23 May at 17.00 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:

Island Hotels Group Holdings plc – Presentation to Financial Intermediaries

Island Hotels Group Holdings plc – Summary Note

Island Hotels Group Holdings plc – Prospectus

Island Hotels Group Holdings plc – 2013 Annual Report

Rizzo, Farrugia & Co. (Stockbrokers) Ltd acted as Joint Sponsor to the Island Hotels Group Holdings plc Bond Issue

This webpage has been prepared based on the Prospectus dated 6 May 2014 issued by Island Hotels Group Holdings 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.

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