International Hotel Investments p.l.c. has announced the issue of a €25 million 10-year bond bearing an interest rate of 6.25 per cent per annum.
The bonds are redeemable in 2020 or as from 2017, at the issuer’s option.
Details of the bond issue were presented by IHI managing director Joseph Fenech during a press conference at the Corinthia Palace Hotel & Spa.
The proceeds from the bonds would be principally used to redeem the outstanding amount of the five per cent IHI convertible bond which matures on May 29 and to repay in full, of an existing loan facility.
Preference will be given to applicants holding the maturing five per cent IHI convertible bond who surrender their existing holding in favour of a holding in the new bond. Registered shareholders and bondholders of the Corinthia Group – including IHI , Corinthia Finance p.l.c. and Mediterranean Investments Holding p.l.c. - will also be given preference.
Application forms and copies of the prospectus are available from today from authorised financial intermediaries. Subscriptions open on March 24 and the offer closes on March 30 or earlier if over-subscribed.
“IHI’s prudent approach to business, coupled with the group’s fine-tuned business acumen and knowledge of the industry in which we operate, has helped the company turn these challenging times into an opportunity to invest in international markets.
"At present we are focusing strongly on major cities in Western Europe and the strategy is to continue identifying investment opportunities in a number of mature markets like Rome and Paris.
"As a result of the geographical spread of our assets, IHI managed to limit the impact of the effects of the recession from its feeder markets. We are grateful to the Maltese public for their continuous support of our strategy and we are confident that the upcoming Bond issue will be no different,” said Mr Fenech.
IHI was launched as a publicly-traded company in 2000 with the intention to acquire, develop and operate upscale hotels and ancillary real estate in Europe and beyond, principally in fast-evolving destinations.
IHI’s investments to date have featured a combination of new-construction of landmark developments, as also the acquisition of existing hotels, where IHI has maximized the earnings potential of each of the acquired hotels by way of major refurbishment and expansion projects.
The bond is managed by Bank of Valletta p.l.c., which is also acting as Bond Registrar. Charts Investment Management Service Limited are sponsoring stockbrokers while Camilleri Preziosi Advocates serve as legal counsel to the Bond.