7.15% Melita Capital plc 2014-2016

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Melita Capilta plc - Prospectus 7 September 2009

The Company

Melita Capital plc was formed on 16 July 2009 to act as the financing arm and holding company of the new business areas within the Melita Group. The Melita Capital Group invested in wholesale fibre optic services through its fully-owned subsidiary Melita Infrastructure Limited and in 3G mobile telephony through a 30% shareholding in Melita Mobile Limited. The Melita Capital Group offers 3G mobile telephony services throughout Malta and wholesale voice and data fibre optic connectivity from Malta to Sicily.

Melita Capital is party to a management and support services agreement with Melita plc whereby the latter provides Melita Capital with management services at the strategic and operational level of its business. This agreement ensures that the company is in a position to sustain its streamlined organisational structure at the top executive and central administrative level by having continued and guaranteed access to the senior management, engineering and support personnel of Melita plc.

Melita Capital Group’s 3G mobile service was commercially launched in Malta in February 2009, whereas the wholesale fibre optic business operations commenced in June 2009 with the provision of carrier services to Melita plc.

Melita Infrastructure Limited
This fully-owned subsidiary recently completed the laying and commissioning of a submerged fibre optic cable from Malta to Sicily. Melita Infrastructure holds a 7-year contract with Melita plc to provide the latter with a strategic international telecommunications link. The subsidiary also plans to sell additional capacity/carrier services to other telecommunications companies, data service companies, corporate customers, government agencies and other entities requiring high capacity international data connections.

In this respect Melita has just been awarded a tender by a European institution for the provision of internet connectivity for the University of Malta. This 3-year contract is worth around €1.5 million. The fibre optic cable investment forms part of the wider long-term plan of investing in the latest technologies across all of the four services offered by the Melita Group (Pay-TV, internet, fixed line communication and 3G mobile services).
The submarine fibre optic cable should provide increased reliability, efficiency and better connectivity for all the Melita Group’s customers. Moreover it will also provide the Maltese Islands with a greater level of reliability for it to continue to attract foreign direct investment from call-centre, data-centre and financial services companies.

Melita Mobile Limited
In February 2009 Melita Mobile Limited began offering 3G mobile services across the Maltese Islands through its retail stores as well as through indirect retailers. Melita’s key supplier for the mobile network is Ericsson. Melita Mobile had been granted a 15-year 3G licence by the Malta Communications Authority on 16 August 2007 after successfully tendering to become the third wireless telecom operator in Malta.

Together with Melita plc, Melita Mobile offers customers price plans that combine their mobile phone, fixed line, television and broadband into one bill.

Use of Proceeds

The net proceeds from this bond issue were earmarked for the funding requirements of the Melita Capital Group companies as follows:

  • To substitute outstanding bank project finance facilities amounting to approximately €7.5 million which Melita Infrastructure Ltd had taken in respect of the laying and setting up of the submarine fibre optic cable between Malta and Sicily.
  • To fund further capital expenditure associated with the expansion and development of Melita Mobile’s 3G mobile telephony network as well as the working capital requirements associated with the early growth phase of its operations.

Security & Status

Unsecured & Unsubordinated

Coupon

7.15%

Amount Issued

€25,878,300

ISIN Code

MT0000471202

Maturity

The bonds will be redeemed at 100% (par) on 30 September 2016 but may be redeemed early on any date between 30 September 2014 and 29 September 2016 by giving not less than 30 days notice.

Interest Payment

Semi-Annually on 30 March and 30 September

XD Date

16 March and 16 September

Listing

Alternative Companies List

Directors

Joseph A. Gasan, Massimo Prelz, Timothy Simon Green, Robert Savignol, James Wade, Paul Connolly, Gary Quin.

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