Gasan Finance Company plc - Allotment Policy

On 4 May, Gasan Finance Company plc announced its allotment policy in respect of its recent €15 million bond issue. The company received a total value of €31.1 million for the bonds issued with a 6% coupon and therefore the company exercised its over-allotment option and increased the bond issue to €20 million. In total the company received €22.5 million in new money.

The company announced that it received 1,963 applications from the bondholders of the existing 6.4% Gasan Finance bonds who opted to rollover into the new 6% bonds. These applications had a value of €8.6 million, representing 78% of the total value of 6.4% bonds in issue.

The pre-placement stage which took place on Friday 24 April was over-subscribed by 1.6 times as a total of €12.7 million was received against the maximum of €8 million available. Therefore the company scaled down applications to 63.02% of their value.

Moreover, a further 1,897 applications were received for the 6% bonds during the general offer stage with a total value of €9.8 million. Following the €16.6 million received from existing bondholders as well during the pre-placement, the total amount available during the general offer was of €3.4 million. In view of the heavy oversubscription, Gasan Finance Company issued its allocation policy as follows:

(I) Applications by employees were met in full;
(II) Applications having a nominal value up to and including €1,000 were met in full;
(III) Those applications with a nominal value in excess of €1,000 will be allocated as follows: the first €1,000 in full with 18.3% of the remaining balance.

On Monday 11 May, Bank of Valletta plc, as registrars to the bond issue, will transfer refunds of those unsuccessful applications. Meanwhile interest on the Bonds started to accrue on Monday 4 April whilst trading is expected to commence next week.

Comments are closed.