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Simonds Farsons Cisk Plc 3.5% Unsecured Bonds 2027

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Simonds Farsons Cisk Plc has announced the issue of €20,000,000 Unsecured Bonds having a nominal value of €100 each, which will be redeemable in 2027. The Bonds shall bear interest from and including 13th September 2017 at the rate of 3.5% per annum.

BUSINESS OVERVIEW

Simonds Farsons Cisk is the result of the amalgamation of L. Farrugia & Sons Limited, H & G Simonds and The Malta Export Brewery. The construction of the brewery in Mriehel was completed in 1950. Further enhancements and additions to the brewery were undertaken over the years, extending the facilities to bottling plants of soft drinks as the Group embarked on an expansionary strategy across various segments of the food and beverage industry.

USE OF PROCEEDS

The proceeds raised from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €19,600,000, will be used by the Issuer for the following purposes, in the amounts and order set out below:

(i) a maximum amount of €15,000,000 will be used by the Issuer for the purpose of redeeming the Maturing Bond remaining in Issue as at the Cut-off Date

(ii) the remaining of approximately €4,600,000 will be used by the Issuer for general corporate purposes including the funding of the capital investment programme planned for the next few years.

COMPANY OVERVIEW

Simonds Farsons Cisk Plc reports four main segments of operations:

i. Brewing, production & sale of branded beers & beverages

ii. Importation, wholesale & retail of food & beverages, including wines & spirits

iii. Operation of franchised food retailing establishments

iv. Property management

Brewing, production & sale of branded beers & beverages

The ‘brewing, production and sale of branded beers and beverages’ segment includes Eco Pure and the Company, i.e. Simonds Farsons Cisk plc. This segment represents the core business of the Group and is thus the segment that, from a financial performance point of view, is the most material and the largest contributor to the Group’s profitability.

The Company produces and distributes its own brands – Kinnie™, Cisk™, Blue Label Ale™, Hopleaf Pale Ale™, Classic include Brews™, Farsons Shandy™, Lacto™ and San Michel™. The Company is also the exclusive franchise in Malta to PepsiCo, Budweiser and Carlsberg, having the rights to produce, bottle, sell and distribute the said products, amongst other related products, including Skol™, LikeCola™ and 7Up™. Meanwhile, Eco Pure is the company responsible for the marketing, sales and distribution of 18.9 and 10 litre bottles of San Michel water, providing also water dispensers and coolers for rental or purchase.

Importation, Wholesale and Retail of Food & Beverages, Including Wines & Spirits

The ‘importation, wholesale and retail of food and beverages, including wines & spirits’ consists of FBIC and Quintano. While the former focuses mostly on beverage brands, the latter imports and distributes food-related items. Between these two companies, the Group represents a portfolio of global brands in chilled, beverage, grocery, confectionery and food service sectors. The Group also operates Farsons direct through which it retails a selection of these brands.

Operation of franchised food retailing establishments

In Malta, the internationally-renowned franchises KFC™, Burger King™ and Pizza Hut™ are exclusively operated by Food Chain. This segment ‘Operation of franchised food retailing establishments’ operates a total of fourteen outlets under these franchises.

Property management

This segment was established so as to enable the Group to achieve better utilisation of its investment property holdings. Trident and its subsidiary companies own a number of properties that are primarily used within the Group, in particular, the food retailing establishments and the food importation arm. Other properties are also leased to third parties. The shareholders of the Issuer have, at the annual general meeting held on the 27 June 2017, approved the Spin-Off of Trident and its subsidiaries from the Company through the distribution of an interim dividend in kind of the Company’s entire shareholding in Trident.

HOW TO REGISTER TO BUY BONDS?

More information is available from the prospectus dated 31st July 2017, which is available for download from the links below.

Orders may be placed by contacting us on 25 688 688 or via email on info@cc.com.mt.

Applications for existing Simonds Farsons Cisk bondholders will open on the 9th August, and will close on the 5th September.

Applications for the Intermediaries offer will open on the 7th September 2017.

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 a licensed stockbroker and financial intermediary for this bond issue.