Corinthia Finance plc - New Bond Issue

On 28 August 2009, Corinthia Finance plc announced a €20 million bond issue at a coupon of 6.25% per annum. The bonds have a final maturity date of 22 September 2019 but may be redeemed anytime between 23 September 2016 and 22 September 2019. The Issuer also reserves the right to increase the amount up to a further €5 million in the event of over-subscription.The bonds are guaranteed by Corinthia Palace Hotel Co Ltd, the parent company of the Corinthia Group.

Coupon

6.25%

Amount issued

€20,000,000 (with an over-allotment option of up to a further €5,000,000).

Issue Price

100%

Interest Payment

Annually on 22 September.

Maturity

The bonds will be redeemed at 100% (par) on 22 September 2019.

Offer Opens

Tuesday 15 September 2009

Offer Closes

Friday 18 September 2009 (or earlier at the Issuer’s discretion)

Minimum application for bonds

General Offer Stage: €1,000 and in multiples of €100 thereafter.

Listing

Official List of the Malta Stock Exchange

Use of Proceeds

The bond proceeds will be mainly used to redeem the exiting 6.7% Corinthia Finance plc 2009 bond which matures on 30 October 2009. The remaining funds will be passed on to the Guarantor to enable the Corinthia Group to further develop business opportunities arising from its continued expansion.

Guarantor

Corinthia Palace Hotel Co. Ltd

Downloads

Corinthia Finance plc – Prospectus – 28 August 09

Corinthia Finance plc – Authorisation to Apply Form – Sep 09

Corinthia Finance plc – Presentation 31 August 2009

Should you be interested in obtaining a copy of our research note including our recommendation, kindly send us an email on info@rizzofarrugia.com.

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