International Hotel Investments plc – Bond Issue Allocation Policy

cyber

March 17, 2025

Market News
17 March, 2025
3 min read
Market News
17 March, 2025
3 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

On 17 March 2025, International Hotel Investments plc (IHI) announced the basis of acceptance and allocation policy in relation to the offer of €35 million 5.30% unsecured bonds redeemable in 2035.

In total, IHI received 3,771 applications for a total value of €51.7 million. As a result of the over-subscription, the offer was closed ahead of schedule. Holders of the €45 million 5.75% International Hotel Investments plc 2025 bonds who exercised their preference to exchange their maturing bonds into the new bonds amounted to €31.8 million,70.8% of the nominal outstanding. Furthermore, maturing bondholders settled the amount of €1.4 million in cash top-ups to comply with the minimum application of €2,000. All these applications were allotted in full.

Maturing bondholders also applied for an additional €18.5 million in excess of their amounts held in the maturing bonds and additional to cash top ups. These additional amounts applied for by maturing bondholders have been allocated at 9.408%, rounded to the nearest €100, which amounts to €1.74 million.

IHI noted that refunds of unallocated amounts will be made by 24 March 2025 whilst interest on the new bonds will commence accruing on 1 April 2025. The new bonds are expected to be admitted to listing on the Malta Stock Exchange on 28 March 2025 and trading is expected to commence on 1 April 2025. Meanwhile, by 1 May 2025, maturing bondholders who surrendered their existing holdings in exchange for the new bonds will also be receiving the interest of the maturing bond for the period between and including 13 May 2024 and 31 March 2025 and the difference between 5.75% applicable to the maturing bonds and the interest rate of 5.30% applicable to the new bonds from and including 1 April 2025 up to and including 12 May 2025.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 17 March 2025, International Hotel Investments plc (IHI) announced the basis of acceptance and allocation policy in relation to the offer of €35 million 5.30% unsecured bonds redeemable in 2035.

In total, IHI received 3,771 applications for a total value of €51.7 million. As a result of the over-subscription, the offer was closed ahead of schedule. Holders of the €45 million 5.75% International Hotel Investments plc 2025 bonds who exercised their preference to exchange their maturing bonds into the new bonds amounted to €31.8 million,70.8% of the nominal outstanding. Furthermore, maturing bondholders settled the amount of €1.4 million in cash top-ups to comply with the minimum application of €2,000. All these applications were allotted in full.

Maturing bondholders also applied for an additional €18.5 million in excess of their amounts held in the maturing bonds and additional to cash top ups. These additional amounts applied for by maturing bondholders have been allocated at 9.408%, rounded to the nearest €100, which amounts to €1.74 million.

IHI noted that refunds of unallocated amounts will be made by 24 March 2025 whilst interest on the new bonds will commence accruing on 1 April 2025. The new bonds are expected to be admitted to listing on the Malta Stock Exchange on 28 March 2025 and trading is expected to commence on 1 April 2025. Meanwhile, by 1 May 2025, maturing bondholders who surrendered their existing holdings in exchange for the new bonds will also be receiving the interest of the maturing bond for the period between and including 13 May 2024 and 31 March 2025 and the difference between 5.75% applicable to the maturing bonds and the interest rate of 5.30% applicable to the new bonds from and including 1 April 2025 up to and including 12 May 2025.