On 2 March, International Hotel Investments plc announced the issue of €25 million 6.25% Bonds which mature in 2020. IHI reserves the right to redeem the Bonds between 2017 and 2020. The new €25 million bond issue is partly earmarked to fund the redemption of the €11.6 million 5% convertible bonds issued in 2000 and due to mature on 29 May 2010. The remaining bond issue proceeds will be mainly used to fully repay an outstanding loan with an international bank.
IHI will be giving preferential allocation to the holders of the 5% convertible bonds who will be guaranteed full allotment for an amount equivalent to their holding rounded to the nearest hundred and increased to the nearest thousand. IHI will also be giving preferential allotment to its shareholders and bondholders, together with bondholders of Corinthia Finance plc and Mediterranean Investments Holding plc. Those shareholders and bondholders who were on the respective registers as at Friday 26 February 2010 are entitled to this preferential allocation. Meanwhile, the last trading date of the Maturing 5% Bond is today 2 March 2010 and trading in this bond will be suspended until further notice.