Corinthia plans €15m bond issue

Corinthia Finance has submitted an application to the Malta Stock Exchange to offer €15 million in new bonds redeemable in 2019, but which may be redeemed between 2016 and 2019.

The bonds will be guaranteed by Corinthia Palace Hotel Co. Ltd.

The bonds will be interchangeable with the 6.25 per cent Corinthia Finance Bonds issued in accordance with the prospectus dated August 28, 2009, and will be merged as one bond on the next interest payment date in September.

The funds from the new bond will be used for the redemption of the 6.5 per cent Corinthia Finance plc Bond 2010 which matures on April 8.

Preference will be given to holders of the 6.5 per cent Corinthia Finance plc Bonds 2010 who surrender their existing holding in favour of a holding in the new bonds.

The last trading date of the maturing bond was last Tuesday.