Melite Finance plc - Details of New Bond Issue

Wednesday, November 14th, 2018

On 14 November 2018, Melite Finance plc issued a formal notice in connection with a €9.25 million secured bond issue having a coupon of 4.85% and maturing in 2028.

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

Coupon:

4.85%

Amount Offered:

€9.25 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 23 November (first interest payment date is 25 November 2019, being the first business day following 23 November 2019 which does not fall on a business day)

Maturity:

The bonds will mature at 100% (par) on 23 November 2028.

Status:

The Bonds 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. The bonds shall rank with first priority and preference over all present and future unsecured obligations of the Issuer.

The bonds are being secured by a first ranking general hypothec over all of the Issuer’s assets, both present and future as well as a pledge over the shares held by the Issuer in Melite Properties. The net equity of Melite Properties largely reflects the property rights (an intangible asset) which as at 30 September 2018 were valued at €10.3 million. Hence, the value of the security is susceptible to variation during the term of the Bonds.

Use of Proceeds:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €9.0 million, will be used as follows:

  • An amount of circa €3.0 million will be paid to Melite Retail Ltd in part settlement for the transfer of the entire share capital of Melite Properties srl to the Issuer following the restructuring process undertaken across the wider Melite Retail Group;
  • The balance of €6.0 million will be on-lent to Melite Properties srl for the following purposes:

i. to settle a debt of €3 million owed to Melite Retail Ltd as part consideration for the transfer of property rights;

ii. €2.5 million to finance the acquisition of further property rights;

iii. the remaining balance of €0.5 million will be utilised for general corporate funding purposes.

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 Melite Finance plc dated 12 November 2018 including the “Risk Factors” which can be found in Section 2 of the Registration Document on pages 26 to 32, and in Section 2 of the Securities Note found on pages 83 to 85. 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 and Co-Manager to Melite Finance plc.

Downloads:

Melite Finance plc – Summary Note dated 12 November 2018

Melite Finance plc – Registration Document dated 12 November 2018

Melite Finance plc – Securities Note dated 12 November 2018

 

This webpage has been prepared based on the Prospectus dated 12 November 2018 issued by Melite 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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