Hili Finance Company plc - Details of New Bond Issue
On 23 September 2015, Hili Properties plc published a Prospectus dated 18 September 2015 in connection with a new €37 million bond issue. The salient details of the new Bond issue are as follows:
Coupon:
4.5%
Amount Offered:
€37 million
Issue Price:
100% (par)
Interest Payment Date:
Annually on 16 October (first interest payment date is 16 October 2016)
Maturity:
The bonds will mature at 100% (par) on 16 October 2025.
Status:
Unsecured & Guaranteed
The Bonds shall constitute the general, direct, unconditional and unsecured obligations of the Issuer, jointly and severally guaranteed by Harbour (APM) Investments Limited (HIL) and Hili Estates Limited (HEL) (“the Guarantors”), and shall at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt of each of the Issuer and Guarantors. Furthermore, the Issuer may, from time to time, without the consent of the Bondholders, create any other debt securities which may rank senior to the Bonds.
Use of Proceeds:
The proceeds from the Bond Issue, which net of expenses are expected to amount to approximately €36.2 million, will be used by the Issuer for the following purposes, in the amounts and order of priority set out below:
- €19.54 million will be used to repay short-term bank facilities, which funds were applied for the purpose of part-financing the acquisition and refurbishment cost of a number of properties;
- €6.0 million will be used to part-finance the deposit payable on the acquisition of Harbour (APM) Investments Limited (i.e. the company that owns the Benghajsa site); and
- the remaining balance of €10.66 million will be used for the purpose of part-funding new property acquisitions and/or to further reduce the corporate indebtedness of the Group.
In the event that the Bond Issue is not fully subscribed, the Issuer will proceed with the listing of the amount of Bonds subscribed for, and the proceeds from the Bond Issue will be applied in the manner and order of priority set out above. Any residual amounts required by the Issuer will be financed from the Group’s general cash flow and/or bank financing.
Deadline for Hili Ventures Group Bondholders:
Monday 5 October 2015 at 08:30 hrs with applications for a minimum of €2,000 and in multiples of €100 thereafter.
In the event that subscriptions from ‘Hili Ventures Group Bondholders’ exceed €16 million, the unsatisfied excess will be considered for allocation purposes with the applications submitted by the General Public without priority or preference.
Deadline for General Public Offer:
Wednesday 7 October 2015 at 08:30 hrs with applications for a minimum of €2,000 and in multiples of €100 thereafter.
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 Prospectus including the Risk Factors contained in section 2 of the Registration Document and section 2 of the Securities Note. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.
Downloads:
Hili Properties plc – Prospectus dated 18 September 2015
Hili Properties plc – Bond Presentation
This webpage has been prepared based on the Prospectus issued by Hili Properties plc dated 18 September 2015, 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.