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HH Finance PLC Bond Issue – Closed due to over subscription

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HH FINANCE PLC BOND ISSUE – CLOSED DUE TO OVER SUBSCRIPTION

HH Finance Plc has announced the issue of €5,000,000 of 5% Unsecured Bonds redeemable between 2023-2028, 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.

BUSINESS OVERVIEW:

The primary activity of the company is to acquire and subsequently generate rent from a new hotel development situated on St. Augustine Street in Paceville to a hotel operator.

The Hotel will be acquired by HH Finance Plc from Hugo’s Hotels Ltd for a consideration paid party by the bond and partly by subordinated loans.

The property under development consists of nine floors. Management have stated that the upper six floors are to be used solely as hotel rooms, a topmost level for leisure and entertainment (roof top lounge bar) and lower two levels which are to be used as a reception area and a basement spa. The hotel is expected to have a capacity of 160 rooms.

The property will be rented to the operator in an advanced finished state and the operator will be responsible to finance and complete the entire hotel fit-out. The operator will also be obliged to fully maintain the hotel at its own expense and to hand back the property in a fully functional state. The operator is expected to commence operations in June 2018 after finishing and fit-out is completed by the operator.

USE OF PROCEEDS:

The proceeds from the Bond Issue, will be used by the Issuer to part finance the debt due to the Transferor by the Issuer pursuant to the acquisition of the Hotel. The Issuer intends to lease out the hotel in its current state to the Lessee.

COMPANY OVERVIEW:

Hugo Chetcuti has established himself as a pioneer within the local hospitality industry, with his acute business sense and sheer determination already evident from his initial acquisition of Footloose, almost 30 years ago. Since then, he has founded a succession of lucrative bars, restaurants and nightclubs situated in the thriving hub of the island’s entertainment quarter. The ‘Hugo’s’ brand has developed into a commodity offering value for money, hi-end quality, brilliant customer service, excellent food & drink and a unique style.

In recent years Hugo has been developing a hospitality offering with the opening of the Hugo’s boutique-hotel that will be followed this year with the Hugo’s Hotel a 200 room, avant-garde luxury hotel. This will transform ‘Hugo’s’ into nothing less than a full-blown hospitality brand, one that delivers a seamless end-to-end experience for locals and tourists alike.

Ambition and a strong will to succeed, have always been at the forefront of all he does, however, Hugo’s success has also been built on a foundation of loyalty and respect shown to his staff, thus resulting in a strong working relationship with his employees.

HOW TO REGISTER TO BUY BONDS?

Orders will be accepted from the 14th of May, 2018.

All orders must be submitted by not later than the 18th of May @ 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 €1,000.

A copy of the Company Admission 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.

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