Phoenicia Group is seeking investment through a new €50 million unsecured bond issue, carrying a 5.75 per cent coupon rate, financing arm Phoenicia Finance Company plc announced on Friday.
The company shared that the bond issue, referred to as €50 million 5.75 per cent unsecured bonds 2028-2033, is awaiting approval from the Malta Financial Services Authority (MFSA).
The bonds will have a nominal value of €100 per bond issued at par, guaranteed by Phoenicia Malta Limited and Phoenicia Hotel Company Limited, both in terms of annual interest and capital repayment upon maturity.
The application has been made for the bonds to be listed and traded on the official list of the Malta Stock Exchange.
Phoenicia Group is comprised of the property owning and operating companies of The Phoenicia Malta, a five-star hotel located in Floriana. The Phoenicia Malta first opened its doors in 1947 as a luxury hotel, and it boasts 136 newly refurbished guest rooms.
Phoenicia Finance Company also announced the way bonds will be applied for should regulatory approval be obtained.
Firstly, authorised financial intermediaries entering into placement agreements with the company shall be eligible for a maximum total amount of €20 million.
Secondly, holders of the €25 million 4.15 per cent unsecured bonds 2023-2028, holding a nominal value of €100 per bond, announced back in November 2018, will be eligible for the remaining €30 million together with any remaining bonds not subscribed to by the aforementioned financial intermediaries.
Holders of existing bonds may subscribe to the new bonds if they surrender their respective holding in the existing bonds. The company also announced that the cut-off date for such eligibility shall be Thursday 23rd November 2023. Trading in the existing bonds will be suspended after the trading session on 21st November 2023 “until further notice”.
Should there be any bonds not subscribed to by holders of existing bonds, the remaining amount will be made available to authorised financial intermediaries through an intermediaries’ offer.
Phoenicia Finance Company stated that more information on the proposed bond issue will be made through a company announcement once regulatory approval from the MFSA is granted.