United Finance plc published a Formal Notice on 1 July in connection with the publication of a prospectus relating to a €10 million bond issue with an over-allotment option up to another €2 million. The bonds are being issued at 6.75% per annum with a final redemption date of 30 June 2016 (but may be redeemed earlier any date between 30 June 2014 and 30 June 2016, by giving not less than 60 days notice to bondholders).
United Finance is the finance company for United Group Ltd, the parent company of the United Group which is fully-owned by the Gatt Baldacchino family. The United Group operates across 3 main sectors: automotive; fashion retail and property development.
This is the company’s second bond issue and the coupon is identical to the previous bond issued in the year 2000. The net proceeds shall be used by the company mainly to re-finance the redemption of the €9.3 million bond which is due to mature on 31 October 2008. Moreover the bond issue will increase the financing of United Automobile Ltd and will also partly finance the leasing operations conducted by United Garage Ltd. In the event of the exercise of the over allotment option of €2 million, the company may apply proceeds to fund investments in new projects and refinance the existing bank borrowing drawn to fund the Group’s recent investments such as the 20% shareholding in the property development company Pender Ville Ltd.
Subscriptions open on Thursday 10 July and close on Thursday 17 July or earlier. Applications are for a minimum of €1,000 (nominal) and in multiples of €100 thereafter.
Further details including the prospectus are available from our website or by email upon request.