Exalco Finance plc - Details of New Bond Issue

Saturday, August 4th, 2018

On 4 August 2018, Exalco Finance plc issued a formal notice in connection with a €15 million bond issue having a coupon of 4.00% and maturing in 2028.

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

Coupon:

4.00%

Amount Offered:

€15 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 20 August (first interest payment date is 20 August 2019)

Maturity:

The bonds will mature at 100% (par) on 20 August 2028.

Status:

The Bonds shall constitute the general, direct and unconditional obligations of the Issuer and shall at all times rank pari passu, without any priority or preference amongst themselves. The Bonds shall be guaranteed in respect of both the interest due and the principal amount by the Guarantor in terms of the Guarantee. In respect of the Guarantor, the Bonds shall rank with priority or preference to all other present and future unsecured obligations of the Guarantor, save for such exceptions as may be provided by applicable law.

The Bonds will also be secured by a first-ranking special hypothec over the Marina Business Centre and the Mayfair Business Centre which are currently valued at €25.5 million.

Prospective investors are also urged to refer to the “Guarantee” contained in Annex II of the Securities Note forming part of the Prospectus for a description of the scope, nature and term of the Guarantee being provided by Exalco Finance plc.

Use of Proceeds:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €14.7 million, will be used by the Issuer for the following purposes

  • €11.2 million will be used by the Guarantor to re-finance its outstanding banking facilities held with HSBC Bank Malta plc which were originally utilised by the Guarantor to acquire and/or develop various properties and for capital expenditure purposes; and
  • the remaining balance of €3.5 million will be applied towards supporting the Guarantor’s general financing requirements including but not limited to the acquisition and development of other immovable properties.

Plan of Distribution:

The full amount of the bonds was distributed to selected Authorised Financial Intermediaries through private placement agreements.

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 Exalco Finance plc dated 31 July 2018 including the “Risk Factors” which can be found in Section 2 of the Registration Document on pages 6 to 12, and in Section 2 of the Securities Note found on pages 7 to 8. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.

Rizzo, Farrugia & Co (Stockbrokers) Limited is acting as Sponsor, Manager and Registrar to Exalco Finance plc.

Downloads:

Exalco Finance Company plc – Summary Note dated 31 July 2018

Exalco Finance Company plc – Registration Document dated 31 July 2018

Exalco Finance Company plc – Securities Note dated 31 July 2018

 

 

This webpage has been prepared based on the Prospectus dated 31 July 2018 issued by Exalco Finance plc and no representations or guarantees can be made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect 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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