Hili Finance Company plc - Details of New Bond Issue
On 22 July 2019, Hili Finance Company plc published a Prospectus following regulatory approval for the admissibility to listing on the Official List of the Malta Stock Exchange of €80 million 3.80% unsecured bonds maturing in 2029. The salient details of the new bond issue are as follows:
Coupon:
3.80%
Amount Offered:
€80 million (nominal) [€40 million being reserved for Preferred Applicants and €40 million will be made available for subscription by the general public]
Issue Price:
100% (par)
Interest Payment Date/s:
Annually on 27 August (first interest payment date is 27 August 2020)
Maturity:
The bonds will mature at 100% (par) on 27 August 2029.
Status:
The bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, guaranteed jointly and severally by Hili Ventures Limited (the Guarantor) and shall at all times, rank pari passu, without any priority or preference among themselves and with other unsecured debt of the Issuer and the Guarantor.
Use of Proceeds:
The proceeds from the bond, which net of expenses are expected to amount to €79 million will be used by the Guarantor for the following purposes:
- €59 million to finance the acquisition of the 100% shareholding in Kemmuna Limited which in turn owns the Comino Hotel and Bungalows;
- €10 million will be advanced to Cobalt Leasing Limited which in turn will part-finance the acquisition of new containers for the purpose of leasing them to container shipping lines on a long-term basis;
- the balance of around €10 million will be applied to finance other investment opportunities within the Hili Ventures Group including, but not limited to, the setting up of a marine division.
Deadline for ‘Preferred Applicants’:
13 August 2019 at 12:00 hours (noon) with applications for a minimum of €2,000 (nominal) and in multiples of €100 (nominal) thereafter.
‘Preferred Applicants’ are:
• Bondholders, as at the close of trading on 15 July 2019, of the 5.10% 1923 Investments plc 2024; 4.50% Hili Properties plc 2025; 3.75% Premier Capital plc 2026; 3.85% Hili Finance Company plc 2028; and
• the shareholders, directors and employees of any company forming part of Hili Ventures Limited.
Any balance of the bonds not subscribed for by ‘Preferred Applicants’ shall be made available for subscription by the general public in the Public Offer.
In the event that subscriptions from ‘Preferred Applicants’ exceed the reserved portion of €40 million, the unsatisfied excess amounts of such applications will automatically participate in the ‘Public Offer’.
Deadline for ‘Public Offer’:
20 August 2019 at 12:00 hours (noon) with applications for a minimum of €2,000 (nominal) and in multiples of €100 (nominal) thereafter. However, the Issuer reserves the right to close the ‘Public Offer’ period earlier in the event of over-subscription.
Any balance of the bonds not subscribed for in the ‘Public Offer’ shall be made available for allocation to Preferred Applicants.
Listing:
Official List of the Malta Stock Exchange
Downloads:
Hili Finance Company plc – Summary Note dated 18 July 2019
Hili Finance Company plc – Registration document dated 18 July 2019
Hili Finance Company plc – Securities Note dated 18 July 2019
Hili Finance Company plc – Financial Analysis Summary dated 28 June 2019
Disclaimers:
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 Hili Finance Company plc dated 18 July 2019 including the ‘Risk Factors’ which are found in Section 2 of the Registration Document on pages 6 to 12, and in Section 2 of the Securities Note found on pages 6 to 8. 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 18 July 2019 issued by Hili Finance Company 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.