On 21 July, Corinthia Finance plc announced that it has submitted an application to the Listing Authority (MFSA) to offer €20 million in new Bonds which may be redeemed between 2016 and 2019. The offer will be subjest to an over-allotment option of €5 million and the Bonds will be guaranteed by the Issuer’s parent company – Corinthia Palace Hotel Company Limited.
The proceeds will mainly be used to finance the redemption of the 6.7% Corinthia Finance plc Bonds 2009 which matures next 30 October 2009. The remaining funds will be passed on to the Guarantor to enable the Corinthia Group to further develop business opportunities arising from its continued expansion.
Corinthia Finance plc will be giving preference to the holders of 6.7% Corinthia Fiannce plc Bonds 2009 who wish to surrender their existing holding in favour of an equivalent amount of the new Bond. As such trading in these bonds will cease to take place after 25 August 2009.