On 22 November 2016, International Hotel Investments plc announced it received approval for the issuance of €40 million 4.00% unsecured bonds maturing in 2026.
The salient details of the new bond issue are as follows:
Interest Payment Date:
Annually on 20 December (first interest payment date is 20 December 2017)
The bonds will mature at 100% (par) on 20 December 2026.
The bonds shall constitute the general, direct, unconditional and unsecured obligations of the Issuer and shall at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt, save for such exceptions as may be provided by applicable law, without any priority or preference to all other present and future unsecured obligations of the Issuer.
However, the bonds will rank after all bank borrowings (amounting to €184.5 million as at 30 September 2016) and the 4% IHI secured bonds 2026 (€54.2 million) and would also rank after any future secured debts.
Use of Proceeds:
The net proceeds from the Bond issue, estimated at €39.5 million after issuance costs, will be principally used by the Issuer for the following purposes:
- to finance the early redemption of the outstanding €24.8 million 6.25% International Hotel Investments plc 2017-20 bonds;
- to finance the early redemption of the outstanding €14 million 6.5% Island Hotels Group Holdings plc 2017-19 bonds.
In the event that the Issuer does not receive subscriptions for the full amount of €40 million, it will proceed with the listing of the Bonds subscribed for and it shall apply the proceeds received in the order and priority set out above. The residual amount required by IHI, in such a case, will be financed from the Group’s general cash flow and/or bank financing.
Deadline for ‘Preferred Applicants’:
Monday 12 December 2016 at 09:30 hrs with applications for a minimum of €2,000 and in multiples of €100 thereafter.
‘Preferred Applicants’ are: (i) Holders of the 6.25% International Hotel Investments plc 2017-20 as at the close of trading on 15 November 2016 and (ii) Holders of the 6.5% Island Hotels Group Holdings plc 2017-19 bonds as at the close of trading on 15 November 2016.
Applications must be for a minimum of €2,000 and in multiples of €100 thereafter.
Interested applicants are kindly requested to contact us for further information on the application procedure.
Official List of the Malta Stock Exchange
The value of investments may increase as well as decrease and past performance is not an indication of future performance. Prospective investors are urged to read the Prospectus issued by International Hotel Investments plc dated 21 November 2016 including the Risk Factors which are found in the Registration Document on pages 9 to 15 and in Section 2 of the Securities Note found on pages 9 to 10. Prospective investors are urged to consult an independent financial adviser for advice prior to investing in the Bonds.
This webpage has been prepared based on the Prospectus dated 21 November 2016 issued by International Hotel Investments plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is not intended to be and should not be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.