IHI to launch €25m bond issue

International Hotel Investments plc was given the green light to offer €25 million in 6.25 per cent bonds redeemable in 2020, the company said in an announcement on the Malta Stock Exchange yesterday.

The bonds may be redeemed earlier between 2017 and 2020.

Proceeds from this bond issue are earmarked for the redemption of the five per cent IHI plc convertible bond 2010, which matures on May 29 and for the repayment in full of an existing loan facility.

Holders of the maturing bond who indicate their willingness to surrender their existing holding in favour of a holding in the new bonds will be given preference.

The terms of issue will also include a preferred allotment to Corinthia Group listed companies' shareholders and bondholders, including International Hotel Investments plc, Corinthia Finance plc and Mediterranean Investments Holding plc.