International Hotel Investments plc - Details of New Bond Issue

On 20 November 2012, International Hotel Investments plc (IHI) published the Prospectus containing all the details with respect to the new €20 million bond issue. A copy of the Prospectus is available for download from the link below.

Coupon:

5.8%

Amount Offered:

€20 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 21 December

Maturity:

The bonds will mature at 100% (par) on 21 December 2021

Preferred Applicants:

Holders of the 6.3% IHI plc 2013 and 6.8% IHI plc 2013 bonds maturing on 15 February 2013 (collectively referred to as the ‘Maturing bonds’)

Deadline for Preferred Applicants:

7 December 2012

Opening of Intermediaries’ Offer Period:

10 December 2012

Closing of Intermediaries’ Offer Period:

14 December 2012 or earlier in the case of over-subscription

Minimum application (both for preferred applicants and intermediaries’ offer):

€2,000 and in multiples of €100 thereafter.

Listing:

Official List of the Malta Stock Exchange

Risk Factors:

It is recommended to read the Risk Factors found in the Registration Document within the Prospectus on pages 22 to 25 or in Section D of the Summary Note found on pages 10 to 12.

Use of Proceeds:

The net proceeds from this bond issue, estimated at €19,625,000, will be used by the Issuer to part finance the redemption of the outstanding amounts of the 6.3% IHI 2013 and the 6.8% IHI 2018 bonds totalling just under €22.1 million.  The redemption of the remaining balance of €2.45 million will be financed through IHI’s internally generated cash.

Ranking & Sinking Fund:

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

IHI has undertaken that as from the financial year ending 31 December 2015, it shall build a sinking fund which it estimates will be equivalent to 50% of the value of the total bonds in issue by the maturity date.

Downloads:

International Hotel Investments plc – Prospectus – 16 November 2012

Should you be interested in obtaining a copy of our research note including our recommendation kindly send us an email on info@rizzofarrugia.com

 

This webpage has been prepared based on the prospectus issued by International Hotel Investments plc dated 16 November 2012, and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with regard 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.