Halmann Vella Group plc on Tuesday (today) announced that it has been granted approval by the Malta Financial Services Authority (MFSA) for its €23 million secured bond issue to be listed on the Official List of the Malta Stock Exchange.
Halmann Vella Group is a business that primarily operates as a manufacturer of stone, marble and granite, as well as terrazzo and pre-cast elements. It also owns and leases a number of commercial properties, while also being involved in property development and resale.
The bond issue was first announced last May, with the aim of refinancing an existing €30 million bond issue that is due to be redeemed on 6th November 2024.
Last month, Halmann Vella Group suspended the trading of its maturing bonds ahead of the new bond issue.
The secured bonds will carry a 5.35 per cent coupon rate and are set to mature between 2031 and 2034.
Tuesday’s market update was also accompanied by the prospectus for the bond issue, which aside from being available online, can also be obtained from authorised financial intermediaries specified by the group from 8th July 2024.
In the prospectus, Halmann Vella Group stated that the new secured bond issue will result in the cancellation of the existing bonds, with the proceeds from the issue being held in a segregated bank account to be known as the “2014 Bondholder Account,” until the eventual redemption of the outstanding 2014 bonds.
This bank account will be segregated from any other bank account held by Halmann Vella Group, with cash deposits into the account only being applied for redeeming the outstanding amount of the bond issue.
Interest on the secured bonds will start accruing as from 26th July 2024.
The period for the existing bonds to be exchanged to the secured bonds is expected to be from 8th July to 19th July 2024. This will be followed by the intermediaries’ offer on 26th July 2024.
The date of the announcement of the basis of acceptance is expected to be on 2nd August 2024.
On 9th August 2024, the secured bonds are expected to be admitted to the Malta Stock Exchange, while the surrendered existing bonds will be cancelled.
Trading of the secured bonds is set to commence on 12th August 2024.
The group stated that holders of the €30 million bonds electing to subscribe for the secured bonds by surrendering their respective holdings in the existing bond issue shall, within 30 calendar days from admittance of the secured bonds to listing, receive payment of five per cent interest on the existing bonds surrendered for the period between and including 6th November 2023 and 25th July 2024.
