MIDI plc - Details of New Bond Issue

Friday, July 1st, 2016

On 1 July 2016, MIDI plc published a Prospectus in connection with the issuance of €50 million 4.0% secured bonds maturing in 2026. This bond is primarily being issued to finance the redemption of the €40.8 million 7.0% bonds which will be redeemed on 15 December 2016. The new bonds are therefore mainly reserved for existing holders of the 7.0% bonds denominated both in Euro and Sterling to whom preference will be given over new investors.

The salient details of the new bond issue are as follows:

Coupon:

4.0%

Amount Offered:

€50 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 29 July (first interest payment date is 29 July 2017)

Maturity:

The bonds will mature at 100% (par) on 29 July 2026.

Status:

The Bonds shall constitute the general, direct, unconditional and secured obligations of the Issuer, and shall at all times rank equally, without any priority or preference among themselves. However, they shall rank subsequent to any other prior ranking indebtedness of the Company, if any.

In this respect, prospective investors are urged to read Sections 9.4 and 9.5 of the Securities Note on pages 19 – 22.

The security interest in favour of bondholders will comprise a special hypothec of a number of properties (list can be found on page 20 of the Securities Note) owned by MIDI plc which have a value of at least €50 million (the hypothec will rank after the security interest which the Government of Malta retains over the same properties and after any security interest which may rise by law) as well as the pledge (first ranking) of 11,699,999 shares in T14 Investments Limited.

Use of Proceeds:

The net proceeds from the Bond issue, estimated at circa €49 million after issuance costs, will be principally used by the Issuer for the following purposes:

(i) the first €40.8 million, to finance the early redemption of the outstanding €31.7 million & GBP7.2 million (equivalent to circa €9.13 million) 7.00% bonds;

(ii) to release the security interest provided by MIDI plc to secure loan and overdraft facilities made available by HSBC Bank Malta plc to the wholly owned subsidiary Solutions & Infrastructure Services Limited (SIS) [€1.5 million];

(iii) to provide cash collateral to Bank of Valletta plc in respect of the termination of MIDI plc’s interest rate swap agreement [€2.2 million];

(iv) the balance of around €4.5 million shall be used in the financing of various infrastructural and restoration work at Tigné Point which are deemed essential for closing off the Tigné Point project.

Submission Deadline for Preferred Applicants:

Monday 18 July 2016 at 08:30 hours

Preferred Applicants are holders of the 7% MIDI plc 2016/18 (EUR) bonds, 7% MIDI plc 2016/18 (GBP) bonds and shareholders of MIDI plc as at the close of trading on 22 June 2016.

General Public Offer Period:

Monday 18 July 2016 to Wednesday 20 July 2016

The offer period may close early due to oversubscription.

Minimum Application:

Applications for a minimum of €2,000 and in multiples of €100 thereafter.

Interested applicants are kindly requested to contact us for further information on the detailed application procedure.

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 issued by MIDI plc dated 28 June 2016 including the Risk Factors which are found in the Registration Document on pages 8 to 11 and in Section 2 of the Securities Note found on pages 9 to 11. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.

Downloads:

MIDI plc – Summary Note dated 28.06.2016

MIDI plc – Registration Document dated 28.06.2016

MIDI plc – Securities Note dated 28.06.2016

MIDI plc – Financial Analysis Summary dated 24.06.2016

This webpage has been prepared based on the Prospectus issued by MIDI 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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