Hili Finance Company plc - Details of New Bond Issue
On 3 February 2022, 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 €50 million 4% unsecured bonds maturing in 2027. The salient details of the new bond issue are as follows:
Coupon:
4.00%
Amount Offered:
€50 million (nominal)
Issue Price:
100% (par)
Maturity:
11 March 2027
Interest Payment Date:
Annually on 11 March (first interest payment date is 11 March 2023)
Ranking of the Bonds:
The bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer, guaranteed jointly and severally by Hili Ventures Limited (the Guarantor), and will at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt of the each of the Issuer and the Guarantor. Furthermore, subject to the negative pledge clause as found in sub-section 6.11 of the Securities Note, third party security interests may be registered which will rank in priority to the bonds against the assets of the Issuer for so long as such security interests remain in effect.
Use of Proceeds:
The proceeds from the bonds, which net of expenses are expected to amount to €49.25 million, will be used by the Guarantor for the following purposes:
- €17 million to refinance, in part, the acquisition completed by 1923 Investments plc in April 2020 of all non-US ship-to-ship operations from marine energy transporter Teekay Tankers Limited.
- €18.4 million to refinance, in full, an equity investment made by the Guarantor in Hili Properties plc.
- €13.85 million for the general corporate funding purposes of the Hili Ventures Group.
Plan of Distribution:
- Placement Agreements: An amount of €22.5 million has been reserved for subscriptions by Authorised Financial Intermediaries through Placement Agreements.
- Preferred Applicants: An amount of €27.5 million has been reserved for subscriptions by ‘Preferred Applicants’ – namely: (i) bondholders of 1923 Investments plc, Hili Properties plc, Premier Capital plc, and Hili Finance Company plc as at close of trading on 19 January 2022; (ii) shareholders of Hili Properties plc as at close of trading on 19 January 2022; (iii) shareholders of Harvest Technology plc as at close of trading on 19 January 2022; and (iv) Hili Ventures shareholders and employees.
Any remaining balance of the bonds will be made available for subscription by Authorised Financial Intermediaries through an Intermediaries’ Offer.
Offer Period:
14 February 2022 to 4 March 2022 (or earlier in case of over-subscription)
Minimum Subscription Amount:
€5,000 (nominal) and in multiples of €100 thereafter
Listing:
Official List of the Malta Stock Exchange
Expected Listing Date:
21 March 2022
Downloads:
Prospectus dated 27 January 2022
Disclaimer:
This webpage has been prepared based on the Prospectus dated 27 January 2022 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.
Investors wishing to acquire the Bonds should read the Prospectus before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the Bonds. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. Prospective investors are urged to consult their financial advisers as to the suitability or otherwise of acquiring such Bonds. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.
This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta