Pendergardens Developments plc - Details of New Bond Issues

Thursday, May 8th, 2014

On 7 May, Pendergardens Developments plc issued a formal notice in connection with the issue of two secured bonds for a total aggregate amount of €42 million Bonds. Rizzo, Farrugia & Co. (Stockbrokers) Ltd has entered into a placement agreement with Pendergardens Developments plc for an amount of €2 million Series II Bonds which are available for subscription by its clients.

Details of the new Series I & Series II Bond issues are available below.

Series I

Coupon:

5.5%

Amount Offered:

€15 million

Issue Price:

100.00% (par)

Interest Payment Date:

Annually on 31 May

Maturity:

The bonds will mature at 100% (par) on 31 May 2020.

 

Series II

Coupon:

6.0%

Amount Offered:

€27 million

Issue Price:

100.00% (par)

Interest Payment Date:

Annually on 31 July

Maturity:

The bonds will mature at 100% (par) on 31 July 2022.

Series I & Series II

Status:

Security:

The Bonds will be secured by a first-ranking general hypothec over all the present and future assets of the Issuer as well as by a first-ranking special hypothec over the plot of land, measuring 4,596 square metres and earmarked for the construction of Block 16, Block 17 and Towers I & II, together with the improvements made thereon. The Issuer also intends to pledged the proceeds of an insurance covering the replacement value of the Project in favour of bondholders.

Ranking:

The Bonds shall constitute the general, direct, unconditional and secured obligations of the Issuer, and the two series 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 Series I & II Bonds.

The Issuer may incur further indebtedness on a short to medium term basis that may rank pari passu with the Bonds for the purpose of bridging any cash flow shortfalls arising from the proceeds of sales from the Project.

Use of Proceeds:

The net proceeds from this bond issue, estimated at €41.25 million after issuance costs, will be principally used by the Issuer as follows:

i) to finance the redemption of the outstanding unlisted €12 million notes which the Issuer intends to redeem at the first Early Redemption Date of 15 January 2015;

ii) to acquire the land over which the two towers and Block 17 will be developed and to settle amounts owed with respect to works already executed on the aforementioned land (circa €8.95 million);

iii) to finance the construction and development of Phase II comprising Block 16, Towers I & II and Block 17 (circa €20 million).

The remaining €26.1 million funding required to complete Phase II is expected to be generated from net sales of the residential and commercial units within the same project.

Deadline for Submission of Applications:

Tuesday 20 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:

Pendergardens Developments plc – Prospectus

Pendergardens Phase II Animation

This webpage has been prepared based on the Prospectus dated 5 May 2014 issued by Pendergardens Developments 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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