On 27 May 2021, GO plc published a Prospectus in relation to a new €60 million bond issue maturing in 2031. The salient features of the new bonds are as follows:
Interest Payment Date:
Annually on 25 June (with the first interest payment date being 25 June 2022)
25 June 2031
Status & Ranking:
The bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer and will, at all times, rank pari passu, without any priority or preference among themselves and with other unsecured debt, if any. This means that any secured or privileged debts of the Issuer will rank at all times ahead of the obligations of the Issuer under the bonds, as a result of which bondholders may not be able to recover their investment in the bonds in the case of insolvency or an equivalent situation, whether in full or in part. Furthermore, third party security interests may be registered which will rank in priority to the bonds against the assets of the Issuer, as the case may be, for so long as such security interests remain in effect, which registration may further impede the ability of bondholders to recover their investment upon enforcement of such security interests, whether in full or in part.
Use of Proceeds:
The net proceeds from the bond issue, estimated at €59.2 million after issuance costs, will be used by the Issuer for the following purposes, in the amounts and order of priority set out below:
- €36 million for the repayment of borrowings held with the European Investment Bank;
- €20 million for capital expenditure – namely, €16 million for new network rollout as well as €4 million for investment in information technology systems; and
- €3.2 million for general corporate funding.
Plan of Distribution:
The Issuer has reserved up to €30 million of the bond Issue for subscription by Authorised Financial Intermediaries through Placement Agreements. In the case where the amount being reserved for Placement Agreements is oversubscribed, any unsatisfied amounts will automatically be considered for allocation with the applications submitted by ‘Preferred Applicants’ (i.e. GO shareholders as at close of trading on 19 May 2021, and GO Group employees) and the general public.
‘Preferred Applicants’ & the General Public
An amount of €30 million (and any balance available from the Intermediaries’ Offer) will be made available for subscriptions from ‘Preferred Applicants’ and the general public. However, the Issuer will give preference to ‘Preferred Applicants’ in its allocation policy.
- Intermediaries’ Offer: 11 June 2021 at 15:00 hrs
- ‘Preferred Applicants’ and the general public: 3 June 2021 to 18 June 2021 at 12:00 hours
Minimum Subscription Amounts:
- Intermediaries’ Offer: minimum of €5 million (nominal) and a maximum of €10 million (nominal) for each participating Authorised Financial Intermediary, subject to each underlying applicant subscribing for a minimum of €10,000 and in multiples of €100 thereafter.
- ‘Preferred Applicants’ and the general public: €2,000 and in multiples of €100 thereafter.
Official List of the Malta Stock Exchange
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 GO plc dated 25 May 2021 including the ‘Risk Factors’ which are found in Section 3 of the Registration Document on pages 15 to 17, and in Section 2 of the Securities Note on pages 37 to 38. Prospective investors are urged to consult an independent financial advisor for advice prior to investing in the bonds.
This webpage has been prepared based on the Prospectus dated 25 May 2021 issued by GO 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.
Rizzo, Farrugia & Co. (Stockbrokers) Ltd is acting as Sponsor and Manager to GO plc.