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(Over subscribed) – AX Group P.L.C. 3.25% Unsecured Bonds 2026 & 3.75% Unsecured bonds 2029

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The Board of Directors of AX Investments P.L.C. has announced the issue of €25,000,000 AX Group P.L.C. Unsecured Bonds with a nominal value of €100 and issued at par in any one or a combination of: i) 3.25% Unsecured Bonds redeemable in 2026 (the “Series I Bonds”), and ii) 3.75% Unsecured bonds redeemable in 2029 (the “Series II Bonds”).

If you wish to apply for these bonds see information at the bottom of this article or contact us on +356 25 688 888.

BUSINESS OVERVIEW:

Set up in 1977, AX brand is well established in Malta. The Group operates 35 entities which are principally organised into four primary business divisions:

• Hospitality & Entertainment, involving a portfolio of seven properties, six of which are 4 or 5 star hotels consisting of The Palace Hotel, Victoria Hotel, Seashells Resort, Sunny Coast Resort & Spa, Saint John’s Boutique Hotel, Rosselli Boutique Hotel and Tal-Kaptan Restaurants;

• Healthcare, in which the AX Group operates Hilltop Gardens & Retirement Village, the Simblija Care Home and the Revive Physiotherapy and Aquatic Centre;

• Property Development, responsible for developing a number of residential complexes, hotels, restaurants, office blocks and other mixed developments;

• Construction, through which the AX Group undertakes a number of projects including civil engineering works, turnkey assignments and restoration works with the division’s portfolio comprising of Is-Suq tal-Belt, the St John & Rosselli Boutique Hotels, Hotel 1926, the KPMG offices and St Paul’s Catacombs in Rabat & Lascaris War Rooms in Valletta.

USE OF PROCEEDS:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €24,500,000, shall be used by the Issuer for the following purposes:

1. The amount of circa €7,000,000 will be used to part finance the acquisition of land situated in ‘Tas-Sienja’, Marsa earmarked for development into a mixed residential, office and commercial complex;

2. The amount of up to €9,000,000 will be used to part finance the Group’s acquisition and development of ‘41, Merchant Street’ situated in Valletta, currently subject to a promise of sale agreement;

3. The amount of up to €4,500,000, together with any amounts not utilised in in points 1. & 2. above, will be used for the part refinancing of existing banking facilities of the Group;

4. The remaining amount of circa €4,000,000 will be used for general corporate funding purposes of the group.

COMPANY OVERVIEW:

The principal activity of the Issuer includes the investment in other companies or securities issued thereby, the acquisition, holding and disposition of immovable or movable property, and lending of advancement of funds as may be required for the financing or re-financing of the funding requirements of the Group.

The Issuer acts as the ultimate holding company of the Group and does not carry on any trading activities itself other than for the funding purposes of the Group.

HOW TO REGISTER TO BUY BONDS?

Orders for Preferred Applicants will be accepted from the 26th of November 2019.

All orders must be submitted by not later than the 12th of December 2019 at 2 pm (Closing date).

The offer may close at an earlier date by prior notice subject to over-subscription.

In the event that an Intermediaries’ Offer takes place, orders will be accepted from the 18th of December 2019 until 2 pm on 20th December 2019.

Applications must be for a minimum value of €2,000 & multiples of €100 for the Series I Bonds and a minimum value of €10,000 & multiples of €100 for the Series II Bonds.

A copy of the Registration Document is available HERE.

Orders may be placed by contacting us on +356 25 688 888 or via email on [email protected] or through your finance advisor.