Medserv plc - Bond & Rights Issue

Monday, December 21st, 2015

On 21 December, Medserv plc announced that it has been granted approval by the Listing Authority for a €30 million unsecured bond issue as well as a €15 million rights issue.

Bond Issue

Medserv plc will be issuing 30 million unsecured bonds maturing in 2026 in any one or a combination of the following two currencies:

  • Bonds denominated in USD carrying a coupon of 5.75% subject to a minimum investment of USD55,000 which must be retained throughout the lifetime of the bond;
  • Bonds denominated in EURO carrying a coupon of 4.50% subject to a minimum investment of €50,000 which must be retained throughout the lifetime of the bond.

The bonds will be initially offered to financial intermediaries for subscription. In the event that the Bonds are not fully subscribed by the intermediaries, the balance will be issued through a public offer.

Rights Issue

Medserv will also be offering 10,000,000 ordinary shares by way of rights to shareholders as at the close of trading on Wednesday 23 December. Shareholders will have the right to subscribe to 2 new shares for every 9 existing shares at the price of €1.50 per share.

The announcement also revealed that any lapsed rights will be offered to financial intermediaries during an intermediaries offer. These will include the shares not subscribed to by the two major shareholders. In fact, Mr Anthony S. Diacono will not take up any of his rights and therefore his entitlement of 3,750,000 shares will form part of the aforementioned intermediaries offer. Similarly, Mr Anthony Duncan (through Malampaya Investments Limited) will only subscribe to 1,125,000 of his entitlement and the remaining 2,625,000 shares will be part of the aforementioned intermediaries offer of lapsed rights.

If subscribed in full, the rights issue will raise €15 million.

Further details on both issues will be included in the Prospectus which will be made available in electronic form as from Wednesday 23 December whilst hard copies will be available as from 30 December 2015.

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