Bortex Group Finance Plc 3.75% Unsecured Bonds 2027

Bortex Group Finance Plc has announced the issue of €12,750,000 of 3.75% Unsecured Bonds redeemable in 2027, with a nominal value of €100 issued at par. The Bonds are guaranteed by the Guarantor, Bortex Group Holdings Company Ltd and will bear interest at the rate of 3.75% per annum payable annually on 1 December each year until Redemption Date.

USE OF PROCEEDS:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €12,400,000, will be used by the Issuer for the following purposes, in the following amounts and order of priority:

1) an amount of €5,400,000 of the net Bond Issue proceeds shall be advanced,

pursuant to a loan agreement, by the Issuer to Roosendaal Hotels Limited in connection with the refurbishment and extension of the Hotel 1926 and beach club development project in Sliema, Malta;

2) an amount of €800,000 of the net Bond Issue proceeds shall be advanced, pursuant to a loan agreement, by the Issuer to Roosendaal Trading Limited in connection with the redevelopment of the Group’s existing retail outlet in Mosta, Malta, including the extension of existing retail areas and the addition of a catering establishment;

3) an amount of €2,000,000 of the net Bond Issue proceeds shall be advanced, pursuant to a loan agreement, by the Issuer to Roosendaal Trading Limited in connection with the development of a plot of land in Mriehel, Malta into a mixed-use complex with a Bortex outlet on the lower levels and office space on the upper levels;

4) an amount of €1,800,000 of the net Bond Issue proceeds shall be advanced, pursuant to loan agreements, by the Issuer to Group companies for the purpose of part-funding the opening of Gagliardi retail outlets in a number of overseas territories in line with the Group’s international retail expansion strategy, particularly concerning the internationalisation of its own private Gagliardi label;

5) an amount of €1,400,000 of the net Bond Issue proceeds shall be used to carry into effect a repayment and refinancing of part of the Group’s existing bank facilities taken out in connection with the financing of properties owned by the Group, thereby freeing the Group of part of its secured debts owed to third party institutions; and

6) the remaining balance of the net Bond Issue proceeds in an amount of €1,000,000 shall be used for the Group’s general corporate funding requirements in Malta, including operational costs.

COMPANY OVERVIEW:

Bortex Group Holdings Company Ltd is principally engaged, through several subsidiaries that operate in various jurisdictions, in the business of manufacturing garments for its own label, Gagliardi, and other private labels, marketing and retailing garments; and developing high quality property developments, as well as owning and managing hotels and residential properties in Malta.

The Group’s operations are, and have been for a number of years, divided into two principal segments – garment manufacturing and retailing on the one hand; and property development and hotel operations on the other. Although the core business of the Group knows its origins in the garment manufacturing sector, and the eventual retailing of those garments, it has also established itself in the hospitality sector and more recently has moved into the boutique hotel sector, through the refurbishment of a historical property in Valletta, Malta, intended to open its doors in 2018.

More specifically, Bortex Clothing Industry Company Ltd, a direct subsidiary of the Guarantor based in Malta, Bortex UK and Bortex Tunisia, both subsidiaries of Bortex Clothing Industry Company Ltd, carry out the design and manufacturing of a vast range of formal tailoring, outerwear, casual clothing, footwear and accessories. Roosendaal Trading Limited, also a direct subsidiary of the Guarantor, is then involved in the sale and distribution of such clothing through the operation of a number of retail outlets. The business forming part of the Group’s hospitality segment is carried out by Roosendaal Hotels Limited, another direct subsidiary of the Guarantor, which owns and manages the operations of the Hotel 1926 situated in Sliema, Malta (formerly the Plevna Hotel). Shanal Limited was retained as a Group entity to serve as the property company of the Group.

HOW TO REGISTER TO BUY BONDS?

Orders may be placed by contacting us on 25 688 688, via email on [email protected]. or through CC Trader.

Applications for Preferred Applicants will open on the 9th of November and close on the 14th of November with the Intermediaries’ Offer period opening on the 15th November.

All other orders must be submitted by not later than the 30th November 2017 at 12:00pm (Closing date). Offer may close early due to over subscription.

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

A copy of the prospectus is available HERE

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