International Hotel Investments plc - Bondholders’ Meeting

On 24 April, Island Hotels Group Holdings plc announced that it will be convening a meeting for the holders of the €35 million 6% bonds maturing in 2024. The meeting will be held on Wednesday 20 May for bondholders as at the close of trading on 16 April.

During the meeting, bondholders will be asked to approve a resolution which effectively amends the use of proceeds defined in the Prospectus dated 6 May 2014. Part of the €35 million proceeds were earmarked for a €14 million redevelopment project of the Radisson Blu Resort in St. Julian’s. Since then the project has been put on hold given other developments in the area by third parties as well as due to the intention of International Hotel Investments plc to acquire the entire issued share capital of Island Hotels Group Holdings plc. As such, it is being proposed that the aforementioned €14 million proceeds will now be used as follows:

i)                 €10 million to be used for the early repayment of certain bank loans;

ii)                The remaining balance of €4 million to be used for general corporate funding purposes of the Group.

The announcement also revealed that the Group has issued an updated Financial Analysis Summary dated 24 April 2015. The updated document has been prepared on the assumption that bondholders approve the aforementioned change in use of proceeds of the last bond issue.