Mediterranean Investments Holding plc - Details of New Bond Issue

On 4 June 2014, Mediterranean Investments Holding plc (MIH) published a Prospectus dated 2 June 2014 in connection with a new €12 million bond issue. MIH is offering a preferential allocation to holders of the 7.5% MIH Bonds maturing on 4 December 2014 (“Maturing Bonds”). The salient details of the new Bond issue are as follows:

Coupon:

6.0%

Amount Offered:

€12 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 22 June (first interest payment date is 22 June 2015)

Maturity:

The bonds will mature at 100% (par) on 22 June 2021.

Status:

The Bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, and shall at all times rank equally, without any priority or preference among themselves and with other unsecured debt, if any.

However, the indebtedness of the Group includes bank loans and a third party loan which are secured by a number of pledges and mortgages. These new bonds rank after these bank borrowings. In addition, the Bonds would also rank after any future debts which may be secured by a pledge, mortgage, privilege and/or hypothec.

Use of Proceeds:

The proceeds from this bond issue, estimated at €11.8 million after issuance costs, will be used by the Issuer to part finance the redemption of the outstanding €14.76 million 7.5% bonds which mature on 4 December 2014.

The remaining balance of the Maturing Bonds will be financed from the Issuer’s general cash flows.

Deadline for Holders of Maturing Bonds:

Wednesday 18 June 2014

Deadline for Intermediaries’ Offer:

Friday 20 June 2014

Minimum application (both for Holders of Maturing Bonds and for Intermediaries’ Offer):

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

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 including the Risk Factors contained in section 2 of the Registration Document and Securities Note. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.

Downloads:

Mediterranean Investments Holding plc – Prospectus dated 2 June 2014

 

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 Mediterranean Investments Holding plc dated 2 June 2014, 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.