Plaza Centres plc - Details of New Bond Issue

Wednesday, August 24th, 2016

Further to the announcement dated 12 August 2016, on 24 August 2016, Plaza Centres plc published a Prospectus dated 11 August 2016 in connection with the issuance of €8.5 million unsecured bonds redeemable in 2026.

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

Coupon:

3.90%

Amount Offered:

€8.5 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 19 September (first interest payment date is 19 September 2017)

Maturity:

The bonds will mature at 100% (par) on 22 September 2026 [10 years].

Status:

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, and shall at all times rank pari passu without any priority or preference with all other present and future unsecured obligations of the Issuer.

Nonetheless, the Issuer may incur further indebtedness in the future that may rank senior to the Bonds.

Use of Proceeds:

The net proceeds from the Bond issue, estimated at €8.35 million after issuance costs, will be principally used by the Issuer for the following purposes:

(i) to on-lend €5 million to its fully-owned subsidiary, Tigne Place Limited, which in turn will use these funds to part-finance the acquisition of Tigne Place; [The balance of €4.5 million to cover the remaining consideration and the acquisition costs will be funded through bank financing]

(ii) up to a further €3.35 million will be used to repay two outstanding bank loans in full as well as to repay as much as possible of the balance outstanding on the Issuer’s €1.5 million overdraft;

(iii) the remaining balance, if any, shall be applied to the general corporate funding purposes of the Group.

Submission Deadline:

Friday 9 September 2016 at noon.

Minimum Application:

Applications for a minimum of €50,000 and in multiples of €100 thereafter.

The Bonds on offer are subject to a minimum subscription of EUR50,000. Accordingly, if a bondholder wishes to dispose of any bonds, they will need to retain a minimum holding of EUR50,000 unless as a result of the sale of bonds, the bondholder would have disposed of his/her entire holding.

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

Rizzo Farrugia Allocation Policy:

If the amount of applications received exceed the €5.5 million reserved in favour of Rizzo, Farrugia & Co. (Stockbrokers) Ltd as per the conditional Placement Agreement, we will be scaling down each application to the minimum subscription amount of EUR50,000. If, following this scaling down exercise, the value of applications remains in excess of the aforementioned amount of the Placement Agreement, a ballot will be held and only the drawn Bond Applications will be allocated Bonds of EUR50,000. We will NOT be allocating Bonds on a first come first served basis.

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 dated 11 August 2016 on pages 24 to 29 and in Section 2 of the Securities Note found on pages 103 to 105. 

Downloads:

Plaza Centres plc – Prospectus dated 11 August 2016

Rizzo, Farrugia & Co. (Stockbrokers) Ltd acted as Sponsor, Manager & Registrar to the Plaza Centres plc bond issue.

 

This webpage has been prepared based on the Prospectus dated 11 August 2016 issued by Plaza Centres 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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