Borgo Lifestyle Finance P.L.C. 5% Secured Callable Bonds

(Now closed due to over subscription)

Borgo Lifestyle Finance P.L.C. (“Issuer”) has announced the issue of €5,000,000 of 5% Secured Callable Bonds redeemable between 2026-2029, with a nominal value of €100 issued at par.

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

COMPANY OVERVIEW

The principal object of the Issuer is to carry on the activities of a holding and finance company and to subscribe for, take, purchase or otherwise acquire and hold shares, stocks, debentures or other securities of any other company; to grant inter-company financing and to collect funds through bond issues. The Issuer is a special purpose vehicle that was set up specifically to act as a holding company for the Borgo Lifestyle Group srl (“Group”).

As the Issuer does not carry out any trading activities itself, it is economically dependent on the business prospects of the Group, whose core operations include the ownership, management and yacht chartering operation of the vessel called Satori.

Satori is a 136-foot wooden sailing yacht, completed in 2017 in a Turkish boatyard. The vessel is positioned amongst the most luxurious and high-end sailing yachts in the world thanks to the use of the finest materials and the latest technology used in its handcrafted components, its tailor-made offers, and its exclusive service and impeccable quality. The vessel, which is owned by Big Blue Cruising Limited, a company forming part of the Group, is registered and operated out of Malta.

Part of the bond proceeds will be channelled to a sister company of the Group, Relais Borgo Santo Pietro srl (“Borgo”), collectively known as the (“Extended Group”) in the form of an interest bearing loan. The Borgo owns and operates an 800-year-old restored villa in the heart of Tuscany, which was converted into a hotel development of 20 luxury suites.

USE OF PROCEEDS

The proceeds from the bond issue, which net of bond issue expenses are expected to amount to approximately €4,820,000, shall be used for the following purposes in the following amounts and order of priority:

• An amount of €2,000,000 will be channelled to Big Blue Cruising Limited as an interest-bearing loan. This will be used to refinance existing debt (totalling €2.3 million) which was undertaken to finance the construction of the vessel;

• An amount of €2,820,000 will be channelled to Relais Borgo Santo Pietro srl as an interest-bearing loan. This will be used to partly finance the upcoming upgrading project of the Borgo. The total cost of the Borgo project is of €7.3 million, which will be financed by bond proceeds (€ 2,820,000), an equity injection by the shareholders (€ 1,980,000) and by bank finance (€ 2,500,000).

Both loans will be repayable within the 10 year bond period.

BUSINESS OVERVIEW

The Extended Group are involved in the luxury segment within the hospitality and yacht industry. The overall luxury goods industry, including products and services, is worth approximately €915 billion at time of publication and is expected to reach about €1,260 billion in 2024. A significant trend within the luxury industry is the rise of experiential luxury, including categories such as high-end food and wine, luxury hotels, and exclusive vacations. By 2022, the experiential segment is forecast to account for nearly two-thirds of the total luxury market—representing a fundamental shift in consumer behaviour, from owning to being. According to Business Insider travel and hospitality is the first item per value in the annual spending of high net worth individuals.

APPLICATION HAS BEEN MADE TO THE EXCHANGE FOR THE BONDS TO BE ADMITTED TO TRADING ON PROSPECTS MTF. PROSPECTS IS A MARKET DESIGNED PRIMARILY FOR EMERGING AND SMALLER COMPANIES TO WHICH A HIGHER INVESTMENT RISK TENDS TO BE ATTACHED. PROSPECTS MTF SECURITIES ARE NOT ADMITTED TO THE OFFICIAL LIST OF THE MALTA STOCK EXCHANGE.

Investors are strongly advised to carefully read the risk factors in the Admission Document.

HOW TO REGISTER TO BUY BONDS?

Orders will be accepted from the 30th of January, 2019.

All orders must be submitted by not later than the 6th of February, 2019 @ 1200hrs (Closing date)

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

Applications must be for a minimum value of €2,000 and multiples of €100.

A copy of the admission document is available HERE

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

Calamatta Cuschieri Investment Services Ltd is acting as Corporate Advisor, Manager and Registrar for this bond issue.