Dolmen Properties plc partly redeems 2010-2013 bond

Dolmen Properties plc last Friday said it is to redeem 50 per cent of its six per cent Secured Bonds 2010-2013 on its first optional redemption date due on November 20.

The company’s half-yearly accounts published on August 31 showed it had enough cash accumulated from ongoing profits during the years to meet its ­sinking fund obligations and enable it to make a 50 per cent pre-payment on the outstanding bonds.

Bondholders appearing on the register as at November 5 (up to and including trading activity on November 2) will receive 50 per cent of their principal amount together with the yearly interest payable on November 20.

Trading will be suspended between November 3 and 5, both days inclusive, and will recommence on November 8.

The bonds will be redeemed at their redemption value of €233 per bond.

Dolmen Properties plc had issued a total of €10,949,470 (the equivalent of Lm4.7 million) bonds in October 2003 to finance the upgrading and expansion of its Qawra hotel and refinance the long-term bank loan and other loans taken out primarily to fund capital projects at the ­property.

Dolmen Properties plc chairman George Fenech said: “This redemption is a first for the market and confirms the strength of the company.

“This year’s performance is also underpinned by the general recovery witnessed in the tourism industry.

“The hotel’s location and its strong operational base go to support the company’s financial performance.”