SFC announces €15 million 6% bond issue

Simonds Farsons Cisk formally announced today the issuing of 6% unsecured bonds for an aggregate amount of €15 million.

The announcement was made following approval by the Listing Authority and subsequent registration of the related prospectus,

The bonds have a nominal value of €100 each and will be issued at par. The minimum amount of subscription is of €1,100, in integral multiples of €100. They will be redeemed on 15th June 2020 or earlier, at the Company's discretion, at any date after 15th June 2017.

Simonds Farsons Cisk also applied to the Listing Authority for the bonds to be admitted to the Official List and to the Malta Stock Exchange.

Trading of these bonds is expected to start fairly soon, the company said.

The offer consists of two tranches. The first tranche is for Preferred Applicants during the Preferred Applicants Period commencing on May 20, 2010 up to and includ­ing May 28, 2010. The second tranche is for the public during the Public Offer Period commencing on June 1, 2010, up to and including June 8, 2010. The Public Offer Period is subject to right of the Issuer to close subscription lists earlier in the case of over-subscription.

All applications may be submitted through any of the authorised intermediaries.

Louis A Farrugia, Group Chief Executive said the proceeds from this bond issue would be used to finance a bond exchange programme for the Farsons' 6.6% Bonds 2010-2012 that are due for redemption in November 2010, and also for the general financing requirements of the Farsons Group, as it takes the next steps in its strategic development programme.

"This includes the construction of the new Brewhouse, as announced earlier this year. In itself, this is a significant project because the new Brewhouse will be an efficient, fully automated and versatile brewing plant, leading to improved product consistency, reduced production costs, and sufficient capacity for the foreseeable future. It also incorporates energy saving lighting and systems, a new quality control laboratory, offices and a water treatment building and plant," said Mr Farrugia.

On completion of the new Brewhouse in 2012, the original Brewery building will be freed up. The group said it is already assessing how it could make the best possible use of the released property along Mdina Road.

The Group recently announced a notable improvement in its results for the financial year ended 31 January 2010, with profit before tax improving by €2.4 million.

It recently launched a new and more contemporary corporate identity that draws on elements that have long been associated with the group's solid reputation and reliable past, whilst at the same time bringing the Farsons Group in line with contemporary business image standards as it looks ahead.