Qawra Palace plc - Details of New Bond Issue
On 22 December 2022, Qawra Palace plc published a Prospectus following regulatory approval for the admissibility to listing on the Official List of the Malta Stock Exchange of €25 million 5.25% secured bonds maturing in 2033. The Issuer is the owner of the Qawra Palace Hotel property with all its immovable amenities, including facilities underlying the Qawra Coast Road which link the main complex of the hotel to those on the foreshore. The property covers an area of around 8,200 square metres and is held via an emphyteutical concession expiring in 2128. In its current state, the property was valued in November 2022 at €60.7 million. Qawra Palace is a non-trading company and finance vehicle. In fact, Qawra Palace leases the property to a related company, Mallard Co. Ltd (“Mallard”) which in turn operates the hotel. Furthermore, Qawra Palace is raising finance both for itself and its sister company, Mallard.
The salient details of the new bond issue are as follows:
Coupon:
5.25%
Amount Offered:
€25 million (nominal)
Issue Price:
100% (par)
Maturity:
27 February 2033
Interest Payment Date:
Annually on 27 February (first interest payment date is 27 February 2024)
Ranking of the Bonds:
The bonds will constitute the general, direct, and unconditional, obligations of the Issuer and shall at all times rank pari passu, without any priority or preference among themselves. The bonds will rank after any prior ranking indebtedness of the Issuer and is secured via a second-ranking special hypothec over the Qawra Palace property valued at its current state in November 2022 at €60.7 million, with the first-ranking special hypothec over the property of €19.1 million being granted to Bank of Valletta plc. Furthermore, third party security interests may be registered which will rank in priority to the bonds. The bonds would also rank after any future debts which may be secured by a cause of preference such as a privilege and/or a hypothec.
Use of Proceeds:
The net proceeds from the bond issue will be used as follows:
- €16.4 million for the repayment of an outstanding BOV loan of Qawra Palace plc.
- €6.7 million will be on-lent to Mallard to part-finance the extension and refurbishment of the Qawra Palace Hotel.
- €1.5 million for general corporate funding purposes.
Plan of Distribution:
The bonds will be made available for subscription to all categories of investors through an Intermediaries’ Offer. The bond issue is conditional on a minimum subscription of €20 million.
Minimum Subscription Amount:
€2,000 (nominal) and in multiples of €100 thereafter.
Listing:
Official List of the Malta Stock Exchange
Closure of Offer Period:
3 February 2023, or earlier as may be determined by the Issuer.
Expected Listing Date:
27 February 2023
Downloads:
Prospectus dated 20 December 2022
Disclaimer:
This webpage has been prepared based on the Prospectus dated 20 December 2022 issued by Qawra Palace 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 which is 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 a member of the Malta Stock Exchange. The Company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.