On 10 February 2024, Phoenicia Finance Company plc published a Prospectus in relation to a new €50 million bond issue maturing in 2033, with the possibility of early redemption as from 2028. The salient features of the new bonds are as follows:
Interest Payment Date:
Annually on 30 December (with the first interest payment date being 30 December 2024)
30 December 2033
Early Redemption Dates:
Any date falling between 30 December 2028 and 30 December 2033 (subject to the Issuer giving not less than 60 days’ notice)
Use of Proceeds:
The net proceeds from the bond issue, estimated at €49 million after issuance costs, will be used by the Group for the following purposes, in the amounts and order of priority set out below:
- €25 million for the redemption and cancellation of the existing 4.15% Phoenicia Finance Company plc 2023-28 unsecured bonds by way of a bond transfer.
- €24 million for the repayment (in whole or in part) of an outstanding loan with APS Bank plc.
Status & Ranking:
The bonds will constitute the general, direct, unsecured, and unconditional obligations of the Issuer and are guaranteed in respect of both the interest due and the principal amount by the Guarantors (Phoenicia Malta Limited and Phoenicia Hotel Company Limited) jointly and severally. The Bonds will at all times rank pari passu without any priority or preference among themselves and with other unsecured debt of the Guarantors.
Furthermore, subject to a negative pledge clause found in the Prospectus dated 8 February 2024, third-party security interests may be registered which will rank in priority to the Bonds against the assets of the Issuer and of the Guarantors for so long as such security interests remain in effect.
Plan of Distribution:
The bonds will be allocated according to the following order of preference:
- An amount of €20 million is reserved for subscription by a number of Authorised Financial Intermediaries pursuant to Placement Agreements with the Issuer.
- An amount of €30 million (and any amount not subscribed via Placement Agreements) is reserved for existing bondholders of the 4.15% Phoenicia Finance Company plc 2023-28 for a bond transfer and subscriptions to excess amounts.
- Any additional unsubscribed balance will be offered to Authorised Financial Intermediaries through an Intermediaries’ Offer.
Closure of Offer Period (Existing Bondholders):
23 February 2024 at 14:00 hrs
Minimum Subscription Amount:
€2,000 (nominal) and in multiples of €100 thereafter. No minimum subscription is applicable for existing bondholders subscribing through a bond transfer.
Official List of the Malta Stock Exchange
This webpage has been prepared based on the Prospectus dated 8 February 2024 issued by Phoenicia 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 Bond 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