International Hotel Investments plc - Details of New Bond Issue

On 3 March 2010, International Hotel Investments plc announced a €25 million bond issue at a coupon of 6.25% per annum. The bonds have a final maturity date of 8 April 2020.

The Company

IHI was incorporated in March 2000 by the Corinthia Group, a leading international hotel company originating in Malta. The IHI Group currently owns the following:

1)     Corinthia Grand Hotel Royal, Budapest, Hungary (100%);

2)     Corinthia Hotel, St Petersburg, Russia (100%);

3)     Corinthia Lisboa Hotel, Lisbon, Portugal (100%);

4)     Corinthia San Gorg, St Julians, Malta (100%);

5)     Corinthia Hotel, Prague, Czech Republic (100%);

6)     Corinthia Bab Africa, Tripoli, Libya (100%);

7)     Corinthia Hotel & Residences, London, UK (50%) – The remaining 50% is held by LFICO. The Metropole Building and 10 Whitehall Place is currently being converted into a luxury 285-bedroom hotel and 12 luxury apartments for sale scheduled for completed in October 2010.

8)     Benghazi, Libya: (75%) – IHI and LFICO acquired the building formerly known as the Al-Jazeera Hotel which is currently being developed into a 250-room five-star hotel also comprising retail and commercial space and 30 luxury apartments. This development is expected to be completed in 2011.

9)     CHI Ltd (70%) – The remaining 30% shareholding is in the hands of Wyndham Hotel Group International Inc. of the USA. CHI is aiming to fully exploit the benefits of being integrated with the reservation system of Wyndham and is seeking to rapidly increase the management of third-party owned hotels.

10) Quality Project Management Ltd (20%): In April 2000, IHI acquired a 20% shareholding in the construction project management company of the Corinthia Group.

IHI’s principal shareholders are Corinthia Palace Hotel Company Ltd (58.89%) and Istithmar Hotels FZE of Dubai (33.14%). The remaining balance of 7.97% is held by approximately 3,067 shareholders. In April 2000 IHI was listed on the Official List of the Malta Stock Exchange and currently has a market cap of €434.8 million.

Coupon

6.25%

Amount Issued

€25,000,000

Issue Price

100%

Interest Payment

Annually on 8 April

Maturity

The bonds will be redeemed at 100% (par) on 8 April 2020 but may be redeemed on any day between 9 April 2017 to 7 April 2020.

Use of Proceeds

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 used to fully repay an outstanding loan amounting to €12 million with an international bank whilst the balance will be used for the general corporate funding purposes of IHI and its subsidiaries.

Security & Status

Unsecured & Unsubordinated

Listing

Official List

Preferred Applicants’ Closing Date: (the 5% International Hotel Investments plc 2010 Bondholders and shareholders and bondholders of IHI, together with bondholders of Corinthia Finance plc and Mediterranean Investments Holding plc):

23 March 2010

Other Applicants’ Offer Period:

24-30 March 2010

Minimum Application for Bonds:

Preferred Applicants: Rounded to the nearest hundred and increased to a minimum of €1,000.

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

Downloads:

International Hotel Investments plc – Prospectus

International Hotel Investments plc – Authorisation to Apply Form

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