GAP Group P.L.C. 3.65% Secured Bonds 2022

GAP Group P.L.C. has announced the issue of €40,000,000 of 3.65% Secured Bonds redeemable in 2022 with a nominal value of €100 issued at par (New Bonds). The New Bonds shall be issued through the combination of two fungible tranches: the First Tranche Bonds and the Second Tranche Bonds.

The First Tranche Bonds shall be available to holders of the 4.25% GAP Group Plc 2023 bonds (Original Bonds) who wish to exchange to the New Bonds. The Second Tranche Bonds shall be available to those holders of the Original Bonds (Eligible Applicants) who would like to further invest in the New Bonds and to members of the General Public that have not previously invested in the Original Bonds and would like to invest in the New Bonds.

Eligible Applicants opting to exchange their Original Bonds for New Bonds will benefit from a premium of 5% on the nominal value of Original Bonds being surrendered. The premium shall be paid by the Company through a direct bank transfer.

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

COMPANY OVERVIEW

The principal objects of the Issuer is that of a holding company and to promote, including through subsidiaries, the acquisition and development of real estate properties. As such, the Issuer is mainly dependent on the business prospects of its operating Subsidiaries.

USE OF PROCEEDS

In the case of First Tranche Bonds, the proceeds from the Issue will be used to facilitate the conversion of Original bonds into the First Tranche bonds and to enable the Original Security Trustee to release funds from the Original Reserve Account of the Original Bond to the Issuer. Any funds released will be used to settle the premium applicable on the transfer of Original bonds, with the remaining balanced to be used for the settlement of the MeDirect Banking Facility and/or the development of the Luqa project.

In the case of Second Tranche Bonds, the proceeds which, net of Bond Issue expenses are expected to amount to approximately €19.4 million, will be used by the Issuer for the following purposes, in the amounts and priority set out below:

i. A maximum amount of €5.2 million shall be on-lent by the Issuer to Gap Luqa Limited (GLL) to be utilised by GLL to settle all amounts outstanding under the MeDirect Facility; and

ii. A maximum amount of €14.2 million shall be on-lent by the Issuer to GLL for the development and completion of the Luqa Development.

Second Tranche Bonds will not be issued in the event of a 100% exchange of the Original Bonds to the New Bonds.

BUSINESS OVERVIEW

GAP Group P.L.C. is an amalgamation of the experience of Mr. George Muscat, Chairman of the group, together with the enthusiasm & dynamism of Mr. Paul Attard & Mr. Adrian Muscat to make a difference, and create a different type company in the property development industry.

The need to further expand their operations and resources arose so in 2004, whereby a new premises, as head office of the group was inaugurated in Tigne’, Sliema. This was a landmark in the Company’s expansion, and today it employs ten persons directly and hundreds of other indirect workers on its developing property sites.

The Company takes pride in the quality of its work. Each development is researched and tailored to the lifestyle requirements of clients. Their experienced team is always looking to improve on design and quality which allows their developments to stand out in the market place. Gap residential projects vary considerably, from luxury residential homes to apartments, maisonettes, penthouses and villas. Each project has a specialised professional team selected for their experience, able to produce well designed, attractively priced developments.

After having successfully completed two projects in Qawra and Zebbug, the company recently launched a further two projects in Mellieha – a development planned to comprise 152 luxury apartments in the form of 10 blocks, and in Luqa – a development planned to comprise 237 apartments in the form of 21 blocks aimed to cater for first-time buyers and buy-to-let investors.

HOW TO REGISTER FOR BONDS?

i. Eligible Applicants who wish to exchange their Original Bonds for the New Bonds may submit their order via their Financial Advisor or through CC Trader using the instrument “3.65% GAP Group Plc 2022 Form A-Exchange” along with completing and submitting their Application Form A to a Calamatta Cuschieri branch of their choice.

ii. Eligible Applicants who will be exchanging their Original Bonds for the New Bonds and would like to further invest in the New Bonds may submit their order via their Financial Advisor or through CC Trader using the instrument “3.65% GAP Group Plc 2022 Form A-Top Up” along with completing and submitting their Application Form A to a Calamatta Cuschieri branch of their choice.

iii. Eligible Applicants who will not be exchanging their Original Bonds for the New Bonds yet would still like to further invest in the New Bonds may submit their order via their Financial Advisor or through CC Trader using the instrument “3.65% GAP Group Plc 2022 Form B-Eligible Applicants” along with completing and submitting their Application Form B to a Calamatta Cuschieri branch of their choice.

iv. Members of the General Public who have not previously held the Original Bonds and would like to invest in the New Bonds may submit their order via their Financial Advisor or through CC Trader using the instrument “3.65% GAP Group Plc 2022 Form C-General Public”. Applicants for Non-Nominee accounts must complete and submit Application Form C to a Calamatta Cuschieri branch of their choice.

Orders will be accepted from the 6th of March, 2019.

All orders must be submitted by not later than the 26th of March at 12:00pm (Closing date).

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

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

Non-nominee applications will be subject to a EUR 25 fee.

A copy of the prospectus is available HERE

Notes on how to complete the application forms and other information is available HERE