Gasan Finance Company plc - New Bond Issue

Gasan Finance Company plc announced a new €15 million bond issue at a coupon of 6% per annum. The bonds have a final maturity date of 31 May 2016 but Gasan Finance may redeem the bonds between 31 May 2014 and 30 May 2016. The  Issuer also reserves the right to increase the amount up to €20 million in the event of over-subscription.

Interest is payable semi-annually on 31 May and 30 November of each year with the first payment date on 30 November 2009.

A pre-placement exercise is taking place on Friday 24 April 2009. Minimum subscriptions at pre-placement stage are of €10,000 (nominal) and in multiples of €100 thereafter. Meanwhile subscriptions for the General Public Offer open on Monday 27 April and close on Thursday 30 April or earlier in the event of over-subscription. Applications during the General Public offer are for a minimum of €1,000 (nominal) and also in multiples of €100 thereafter.

Those holders of the current 6.4% Gasan bonds who wish to reapply for the new bonds must do so by completing and submitting the special application form which they will receive from the Company and submit by Tuesday 22 April. Current bondholders are being given preferential allocation for the amount of the roll-over and the additional rounding up to the nearest €100. Meanwhile those bondholders who wish to increase their holding by more than the mere rounding up exercise, must submit an additional application form.

Gasan Finance has submitted an application for the new bonds to be admitted to the Official List of the Malta Stock Exchange.

The net proceeds from the Bond issue, which are expected to amount to a maximum of €19.5 million, shall be used by the Issuer: (i) to redeem the current issue of 6.4% bonds amounting to €10.8 million held across 4,000 bondholders; (ii) for general funding purposes of the Issuer; (iii) to refinance part of the debt of the Group Companies, and (iv) to directly or indirectly lend to the Group Companies.

For further information on the bond issue and the Gasan Group, investors are requested to consult the Prospectus or the Presentation. Those investors who wish to purchase some bonds may download an application form and submit to our office accompanied by payment.

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