Hili Finance Company plc - Details of New Bond Issue

Friday, July 6th, 2018

On 6 July 2018, Hili Finance Company plc issued a formal notice in connection with a €40 million bond issue having a coupon of 3.85% and maturing in 2028.

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

Coupon:

3.85%

Amount Offered:

€40 million

Guarantor:

Hili Ventures Limited

Issue Price:

100% (par)

Interest Payment Date:

Annually on 24 July (first interest payment date is 24 July 2019)

Maturity:

The bonds will mature at 100% (par) on 24 July 2028.

Status:

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, guaranteed by the Guarantor, 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 the Guarantor.

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 Hili Ventures Limited.

Use of Proceeds:

The net proceeds from the Bond issue, estimated at approximately €39.4 million after issuance costs, will be on-lent to the Guarantor which, in turn, will utilise the funds as follows:

  1. €6.5 million to repay in full a bank loan of 1923 Investments plc which was originally used to part-finance the acquisition of the Apple business in Poland;
  2. €6 million to re-finance outstanding bank facilities of Hili Properties plc which were originally utilised for the acquisition of investment property;
  3. €4 million to re-finance an outstanding loan of 1923 Investments plc which was originally granted for the acquisition of the logistics operation in Poland;
  4. €13.8 million to re-finance an outstanding shareholder loan which was originally advanced for part-financing the acquisition of McDonald’s Romania by Premier Capital plc (€10.8 million) and investments made by Hili Properties plc in Latvia (€3 million);
  5. €4 million to part-finance upcoming acquisitions and development of investment property by Hili Properties plc in the Baltics and Romania;
  6. €3.4 million to fund the expansion of the Apple retail operation of 1923 Investments plc in Romania and to implement a stronger enterprise resource planning system to enhance operational efficiencies; and
  7. €1.7 million to be used by the Guarantor for group-wide investment opportunities.

Plan of Distribution:

The full amount of the bonds was distributed to 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 Hili Finance Company plc dated 04 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.

Downloads:

Hili Finance Company plc – Summary Note dated 04 July 2018

Hili Finance Company plc – Registration Document dated 04 July 2018

Hili Finance Company plc – Securities Note dated 04 July 2018

Hili Finance Company plc – Financial Analysis Summary dated 04 July 2018

 

This webpage has been prepared based on the Prospectus dated 04 July 2018 issued by Hili Finance Company 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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