Global Capital has extended the closing date for its €10 million bonds until June 8 – just a day before the company needs to repay a maturing bond dating back to 2006.

Global Capital insisted that the extension was given because “the company was still receiving interest both from existing bondholders and from new professional investors” although no information was given on the amount of applications actually received.

Most corporate bonds in Malta are snapped up within hours of issue.

Chairman Paolo Catalfamo, whose company Investar is a majority shareholder, told the Times of Malta that Investar and its sponsor – Calamatta Cuschieri – provided a commitment to take up, between them, whatever portion of the bond was not placed. He added that the original offer period was too short and hence the decision was taken to extend it.

The original offer period was too short

On June 2, its previous bond matures, but Dr Catalfamo explained that the company has seven days in which to make the payments – meaning that the money from the current five per cent unsecured bond issue, now closing on June 8, would be available just a day before.

Calamatta Cuschieri is acting as nominee for its professional clients, guaranteeing to subscribe up to an additional €5 million in the event of a shortfall in the overall take-up of the bonds after Investar confirms its own €5 million commitment.

Global Capital is issuing €10 million worth of unsecured bonds, maturing in 2021.

The original bond was issued in 2006 but only €13.7 million of the original €17 million is still outstanding, the rest having been bought back during early redemption periods. Dr Catalfamo said the company would pay for €3.7 million with the cash it owns (part of the proceeds from the last rights issue) and €10 million with the proceeds from the new bond.