Corinthia Finance plc - New Bond Issue

On 1 February 2010, Corinthia Finance plc announced that it has submitted an application to the Listing Authority to offer a new bond of €15 million which matures in 2019 but may be redeemed earlier between 2016 and 2019. The new Bond will be guaranteed by Corinthia Palace Hotel Company Limited.  The new issue will be fungible with the existing 6.25% Corinthia Finance 2019 Bonds and thus will be merged as one Bond on the next interest payment date falling on the 23 September 2010.

Subject to approval, the proceeds are mainly earmarked for the redemption of the outstanding €14.3 million 6.5% Corinthia Finance Bond 2010 which matures on 8 April 2010. The Issuer will be giving preferential allocation to holders of the maturing 6.5% Bonds who indicate their willingness to surrender their existing holding in favour of an equivalent holding in the new bonds. As such bondholders as at close of trading on 2 February 2010 will be entitled to this preferential treatment. As a result trading in the maturing 6.5% Bonds will be suspended as from 3 February 2010.

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