Bay Street launches Lm3m bond issue

Bay Street Finance plc yesterday launched a public bond offering of Lm3 million, with an over-allotment option of another Lm3 million, issued at par at eight per cent interest, payable annually.

Each bond has a nominal value of Lm100. The bonds will be on sale from June 10 and the offer will close on June 20 or earlier at the company`s option. The bonds are due for redemption on June 26, 2012.

The bond issue was launched by Tony Mejlaq, chairman of Business Process Consulting, which was engaged on a five year contract to manage and operate the Bay Street tourist complex.

Mr Mejlaq said the bond had a very attractive interest coupon, which could be exchanged into shares (at the investor`s option) of Bay Street Holdings Ltd at 107 per cent in the event of an offer taking place between 2005 and 2012. The proceeds of the bond will be utilised to reduce outstanding amounts due to capital creditors and refinance of existing banking facilities.

An application has been made to the Malta Stock Exchange (MSE) for the bonds to be listed on the Alternative Companies List (ACL).

Since its inauguration in November 2000, the complex, which is composed of 16 food and beverage operators, 10 services outlets and 40 retail outlets, has always enjoyed 100 per cent occupancy. The Bay Street tourist complex brings together a variety of tourist accommodation facilities, retail outlets, food and beverage operations as well as daytime and night-time entertainment facilities both within and outside the complex.

Lombard Bank will be acting as managers and registrar for the Bay Street Finance plc bond issue.