4.00% MIDI plc 27.07.2026 (Secured)

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MIDI plc - Prospectus dated 28 June 2016

The Company

The MIDI Group is composed of the parent company, MIDI plc, and its wholly-owned subsidiaries:

  • Tigné Contracting Limited – the Group’s turnkey company;
  • Tigné Point Marketing Limited – responsible for all the marketing and sales activities;
  • Solutions and Infrastructure Services Limited – responsible for the installation, operation and maintenance of all the building technologies within the Tigné Point and Manoel Island developments as well as the management of the public car park at Tigne’ Point;
  • T14 Investments Limited – a holding company having a 50% shareholding in Mid Knight Holdings Limited which in turn is responsible for the development and management of the business centre in Tigne’ Point known as “The Centre”.

Tigne’ Point & Manoel Island projects

Tigné Point is a residential, commercial and leisure development located in Sliema on the north-eastern coast of Malta, approximately one kilometre north of Malta’s capital Valletta. The development commenced in December 2000 and comprises high-end residential units, a number of commercial and retail outlets as well as a public car park and other amenities.

On the other hand, the development at Manoel Island is envisaged to take the form of a low-density, secluded marina village. Following the finalisation of a masterplan for Manoel Island, MIDI intends to proceed with a professional investor search with the aim of identifying a strategic partner with whom to undertake the project. MIDI has already received interest from prospective investors and discussions having been taking place with a number of these investors. Nonetheless, MIDI remains committed to its current strategy of seeking the finalisation of the masterplan and the subsequent professional investor search.

Use of Proceeds

The net proceeds from the Bond issue, estimated at circa €49 million after issuance costs, were principally used for the following purposes:

 

  • the first €40.8 million, to finance the early redemption of the €31.7 million 7% EUR bonds & GBP7.2 million 7% GBP bonds (equivalent to circa €9.13 million);
  • to release the security interest provided by MIDI plc to secure loan and overdraft facilities made available by HSBC Bank Malta plc to the wholly owned subsidiary Solutions & Infrastructure Services Limited (SIS) [€1.5 million];
  • to provide cash collateral to Bank of Valletta plc in respect of the termination of MIDI plc’s interest rate swap agreement [€2.2 million];
  • the balance of around €4.5 million was used in the financing of various infrastructural and restoration work at Tigné Point which were deemed essential for closing off the Tigné Point project.

Status

The Bonds shall 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. However, they shall rank subsequent to any other prior ranking indebtedness of the Company, if any.

In this respect, prospective investors are urged to read Sections 9.4 and 9.5 of the Securities Note on pages 19 – 22.

The security interest in favour of bondholders will comprise a special hypothec of a number of properties (the list can be found on page 20 of the Securities Note) owned by MIDI plc (the hypothec will rank after the security interest which the Government of Malta retains over the same properties and after any security interest which may rise by law) as well as the pledge (first ranking) of 11,699,999 shares in T14 Investments Limited.

Coupon

4.0%

Amount Issued

€50,000,000

ISIN Code

MT0000421223

Maturity

The bonds will mature at 100% (par) on 27 July 2026.

Interest Payment

Annually on 27 July

XD Date

12 July

Listing

Official List

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