Mediterranean Investments Holding plc - Details of New Bond Issue

On 1 July 2020, Mediterranean Investments Holding plc announced that it received approval for the issuance of €20 million 5.50% unsecured bonds maturing in 2023.

The salient details of the new bond issue are as follows:

Coupon:

5.50%

Amount Offered:

€20 million

Guarantor:

Corinthia Palace Hotel Company Limited (CPHCL)

Issue Price:

100% (par)

Interest Payment Date:

Annually on 31 July (with the first interest payment date being 31 July 2021)

Redemption Date:

31 July 2023

Status:

The Bonds shall constitute the general, direct, unsecured and unconditional obligations of the issuer, guaranteed by the guarantor, and shall at all times rank pari passu, without any priority or preference among themselves and with other outstanding and unsecured debt of each of the issuer and the guarantor, present and future, if any, save for such exceptions as may be provided by applicable law. Furthermore, subject to the negative pledge clause (sub-section 6.8 within the securities note), third party security interests may be registered which will rank in priority to the Bonds against the assets of the Issuer for so long as such security interests remain in effect. As at the date of the securities note, the issuer does not have any subordinated indebtedness.

Allocation Policy:

The Issuer shall allocate the Bonds on the basis of the following policy and order of priority:

  1. Maturing bondholders applying for bonds by way of maturing bond transfer and subject to a minimum application of €1,000;
    1. Maturing bondholders in respect of any additional Bonds applied for other than by maturing bond transfer exceeding in value the aggregate nominal value of maturing bonds held by them as at the cut-off date; and
    2. Existing Corinthia bondholders, pari passu, without priority or preference between them and in accordance with the allocation policy as determined by the issuer. Accordingly, in the event that a maturing bondholder applies for additional bonds other than by way of maturing bond Transfer as specified in (1) above, no guarantee shall be given with respect to the amount of bonds to be allocated to the excess bonds applied for by such maturing bondholder;
  3. In the event that following the allocations made pursuant to paragraphs (1) and (2.1 & 2.2) above there shall still remain unallocated bonds, the issuer shall offer such remaining bonds to authorised intermediaries through an intermediaries’ offer.

Use of Proceeds:

The net proceeds from the bond issue, estimated at €19,500,000 after issuance costs, will be used by the issuer for the redemption of the outstanding amount of the maturing bonds remaining in issue as at 31 July 2020. As at the date of the Prospectus the aggregate value of maturing bonds in issue stands at €18,407,800. The remaining balance of net bond issue proceeds shall be applied towards the general corporate funding purposes of the group.

Issue Period:

3 July 2020 to 16 July 2020.

Minimum Application:

€1,000 and in multiples of €100 thereafter.

Any maturing bondholders whose holding in maturing bonds is less than €1,000 shall be required to pay the difference together with the submission of their Application Form A (“Cash Top-Up”).

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 issued by Mediterranean Investments Holding plc dated 1 July 2020 including the ‘Risk Factors’ which are found in Section 2 of the Registration Document on pages 7 to 12, and in Section 2 of the Securities Note on pages 7 to 9. Prospective investors are urged to consult an independent financial advisor for advice prior to investing in the bonds. 

Downloads:

Mediterranean Investments Holding plc – Summary Note dated 1 July 2020

Mediterranean Investments Holding plc – Registration Documented dated 1 July 2020

Mediterranean Investments Holding plc – Securities Note dated 1 July 2020

Mediterranean Investments Holding plc – Financial Analysis Summary dated 1 July 2020

Rizzo, Farrugia & Co. (Stockbrokers) Ltd acted as Sponsor to the Mediterranean Investments Holding plc bond issue.

This webpage has been prepared based on the Prospectus dated 1 July 2020 issued by Mediterranean Investments Holding plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect 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.