Corinthia Finance plc - Approval of New Bond Issue

On 12 February, Corinthia Finance plc announced the issue of €15 million 6.25% Bonds which mature in 2019. The Issuer reserves the right to redeem the Bonds on any day between 24 September 2016 and 22 September 2019. The Bonds will be guaranteed by Corinthia Palace Hotel Company Limited, the Issuer’s parent company. This is the second tranche of the 6.25% Bonds following the issue in September 2009. This second issue will be merged as one Bond on the next interest payment date falling on 23 September 2010.

The proceeds from this bond issue will be mainly used to finance the redemption of the maturing 6.5% Corinthia Finance plc Bond 2010 due on 8 April 2010. The Issuer will be giving preferential allocation to the 6.5% Bondholders and will be guaranteed full allotment for an amount equivalent to their holding rounded up to the nearest thousand. Bondholders who accept to switch between the two bonds will be compensated for the difference between the coupon rates for the period between 12 March 2010 and 8 April 2010.

Existing bondholders have until 25 February to submit their applications. Meanwhile the closing date for other applicants who wish to subscribe for the 6.25% bonds is 5 March.

Further details and a copy of the Prospectus is available from our website.

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