Mizzi Organisation Finance plc has published a prospectus for a new 3.65 per cent €45 million bond issue maturing in 2031.

The organisation, which is one of the largest private enterprises in Malta and holds a broad portfolio of business interests, including in property, hospitality, automotive, beverage, insurance, importation, and retail, will be using just over half of the funds to refinance existing borrowings.

Around €3 million will partially finance the refurbishment of the company’s Arkadia Complex in Rabat, Gozo, which will entail the gutting of the premises for the purposes of completing the entire re-modelling and modernising of the property.

Another €5 million will go towards the partial financing of the ‘Ħofra Project’, consisting of the development of a vacant excavated site located in Blata l-Bajda, measuring circa 3,200 sqm, into a petrol station, underground facilities, and a showroom to be occupied by the company’s automotive division.

The ground floor of the site is earmarked for a drive-through restaurant.

A further €11 million is for general corporate funding purposes of the Mizzi Organisation.

The bonds will be issued at par, with the 3.65 per cent interest being paid annually on 15th October, with the first interest payment date being 15th October 2022.

The issue will mature in 2031, but early redemption will be possible on any date falling between 15th October 2028 and 14th October 2031 (subject to the Issuer giving not less than 30 days’ notice).

Since Mizzi Organisation Finance plc is a vehicle for raising funds on the capital markets, and does not carry out any trading activity of its own, the bonds are unsecured but jointly and severally guaranteed by four Guarantors.

Bondholders shall be entitled to request the Guarantors to pay both the interest due and the principal amount if the Issuer fails to meet any amount when due in terms of the prospectus. The joint and several Guarantee also entitles the Bondholders to demand payment from any or all the Guarantors without having to first take action against the Issuer.

The Guarantors are Mizzi Organisation Limited, Consolidated Holdings Limited, The General Soft Drinks Company Limited, GSD Marketing Limited.

The Guarantee constitutes a direct, unconditional, and unsecured obligation of the Guarantors.

As regards distribution of the bonds, €25 million of the bond issue is reserved for subscriptions from Placement Financial Intermediaries through Placement Agreements, while €5 million is reserved for subscriptions from ‘Preferred Applicants’ – i.e. Mizzi Organisation shareholders, employees, and Directors.

The remaining €15 million of the bond issue is reserved for subscriptions by Financial Intermediaries.

Prospective investors who wish to participate are asked to submit their application by Friday 8th October 2021 at noon.

The minimum subscription amount is €5,000, and in multiples of €100 thereafter.

The fact sheet for the bond issue may be found here while the full prospectus may be accessed here.