Hili Finance Company plc - Details of New Bond Issue
On 4 June 2024, 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 5% unsecured bonds maturing in 2029. The salient details of the new bond issue are as follows:
Coupon:
5.00%
Amount Offered:
€80 million (nominal)
Issue Price:
100% (par)
Maturity:
17 July 2029
Interest Payment Date:
Annually on 17 July (first interest payment date is 17 July 2025)
Ranking of the Bonds:
The bonds will 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.
Use of Proceeds:
The proceeds from the bonds, which net of expenses are expected to amount to €78.7 million, will be used by the Guarantor for the following purposes:
- €36 million for the exchange and cancellation of the 1923 Investments plc unsecured bonds maturing in December 2024.
- An amount of up to €56 million (which includes any balance not utilised in the exchange offer) will be used to refinance bank loans that were used for recent capital investments, including the acquisition of Cortland SP. z.o.o. for €42.3 million and the acquisition of shares in Tigné Mall plc amounting to €18.3 million.
- Any residual balance will be used for the general corporate funding purposes.
Plan of Distribution:
- An amount of €36 million has been reserved for subscriptions by bondholders of 1923 Investments plc applying for bonds through the Exchange Offer, including any cash top-ups where applicable. When participating in the Exchangeable Bond Transfer, 1923 Investments bondholders will also receive the difference between the interest rate applicable to the 1923 Bonds (5.1%) and the interest rate of 5% applicable to the bonds being subscribed for the period from and including 17 July 2024 up to and including 4 December 2024, within thirty calendar days from admission of the new bonds to listing.
- An amount of €34 million together with any remaining balance not taken up through the exchange offer has been reserved for subscriptions by 1923 Investments plc bondholders applying for excess bonds over and above the exchange of their existing holdings, and other Preferred Applicants ranking pari passu without priority or preference.
- An amount of €10 million and any remaining balances not taken by preferred applicants will be made available to the general public.
Preferred Applicants:
Directors and employees of Hili Ventures Limited and its parent and subsidiary entities together with holders of securities as at the close of trading on 29 May 2024 of the following issuers: 1923 Investments plc, Hili Properties plc, Premier Capital plc, Hili Finance Company plc, and Harvest Technology plc.
Offer Period:
19 June to 10 July 2024 (or earlier in case of over-subscription)
Minimum Subscription Amount:
€3,000 (nominal) and in multiples of €100 thereafter
Listing:
Official List of the Malta Stock Exchange
Expected Listing Date:
24 July 2024
Download:
Disclaimer:
This webpage has been prepared based on the Prospectus dated 3 June 2024 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.