International Hotel Investments plc - Details of New Bond Issue

Wednesday, March 6th, 2019

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International Hotel Investments plc – Prospectus dated 4 March 2019

THE ISSUER

International Hotel Investments plc (“IHI”) is mainly engaged in the ownership, development and operation of luxury ‘Corinthia’ branded hotels and ancillary real estate located in Europe, North Africa and the Middle East. Its principal shareholders are Corinthia Palace Hotel Company Limited (“CPHCL”) (57.81%), Istithmar Hotels FZE (21.69%) and Libyan Foreign Investment Company (“LAFICO”) (10.85%) with the balance of 9.65% held among circa 3,200 retail and institutional shareholders.

The Group owns hotels and real estate in the Czech Republic (Prague), Hungary (Budapest), Libya (Tripoli), Malta (St Julian’s and Attard), Portugal (Lisbon) and Russia (St Petersburg). Furthermore, it has a 50% stake in three other hotels which are located in Belgium (Brussels), Malta (Golden Bay) and the UK (London).

IHI generates the majority of its income from hotel operations. In turn, this is mostly derived from owned-hotels supplemented by other income from the management of hotels owned by third-party investors.  Furthermore, the Group generates rental income from residential and commercial premises as well as other revenue from large-scale project management and development. IHI also has a catering arm and owns a large tract of land located in Ħal-Ferħ which it intends to develop into an upmarket tourist and residential complex in the future. Similarly, the Group also intends to redevelop its existing three hotel properties located in St George’s Bay (Malta) over the medium-to-long term. This project comprises the potential conversion of the Corinthia St George Hotel into an ultra-luxury hotel as well as the development of serviced residential real estate on adjacent vacant land.

USE OF PROCEEDS

The net proceeds from the bonds will be principally used for part-financing the redevelopment of the Corinthia Grand Astoria Hotel Brussels (€10 million) as well as the Group’s share of investment in a mixed-use real estate project located in Moscow (USD6 million). The latter comprises a ‘Corinthia’ branded hotel as well as residential apartments earmarked for resale. The remaining balance of the bond proceeds will be used for general corporate funding purposes.

STATUS

The bonds constitute the general, direct, unconditional and unsecured obligations of IHI and shall, at all times, rank pari passu, without any priority or preference among themselves and with other unsecured debt of the Group.

The Group’s indebtedness amounted to €569.9 million as at 30 September 2018. This includes bank borrowings amounting to €363 million and secured bonds that are backed by privileges, hypothecs and other security. Accordingly, the new bonds rank after all such secured debt of the Group, both present and future.

COUPON

4.00%

AMOUNT ISSUED

€20,000,000

FUNGIBILITY

The bonds are fully fungible with the existing 4% IHI plc unsecured bonds 2026. It is expected that the new bonds and the existing bonds will trade separately on the secondary market up until the first interest payment date of the bonds (i.e. 20 December 2019) before fungibility takes place.

ISIN CODE

MT0000111329

MATURITY

The bonds will mature at 100% (par) on 20 December 2026.

INTEREST PAYMENT

Annually on 20 December

XD DATE

5 December

LISTING

Official List

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