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Gillieru Investments Plc 4.75% Secured Bonds 2028 – Now closed due to over subscription

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GILLIERU INVESTMENTS PLC BONDS ISSUE IS NOW CLOSED DUE TO OVER SUBSCRIPTION

Gillieru Investments Plc has announced the issue of €5,000,000 of 4.75% Secured Bonds redeemable in 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 +356 25 688 888.

COMPANY OVERVIEW:

The primary activity of Gillieru Investments Plc, is to carry out the activities of a holding and finance company by raising capital for the financing of capital projects and the loaning of such capital to the Group’s subsidiary companies, Gillieru Holdings Limited and Gillieru Operations Limited.

The holding company, Gillieru Holdings Limited, and the operating company, Gillieru Operations Limited, will own and operate the Gillieru Harbour Hotel and Restaurant in St Paul’s Bay. The Hotel houses 86 rooms, each including an ensuite bathroom, whilst the Restaurant can cater for up to 500 patrons (350 within the Restaurant and 150 in the Hotel’s Terrace). The Property is complemented by landscaping, outdoor areas and terraces and hosts a cafeteria, Café Carmelo, which has just started operating and has 40 covers.

The Hotel also operates a lido and a pool bar, in the outdoor pool of the Property. Additional revenue is generated through the lease of a diving centre and through hotel service offerings such as room service.

USE OF PROCEEDS:

The proceeds from the Bond Issue which, net of Bond Issue expenses, are expected to amount to approximately €4,900,000, will be used by the Issuer to provide financing to Gillieru Holdings Limited for the following purposes, in the following amounts and order of priority:

1. An amount of €4,250,000 shall be used to settle all amounts due in respect of the acquisition of the Property and the ancillary business from the original ownership structure (including interim bank facilities taken out to finance such acquisitions);

2. An amount of €650,000, shall be used to part finance the general upgrading of the Property.

BUSINESS OVERVIEW:

The Hotel and Restaurant were founded almost a century ago by the entrepreneur Toni Cremona, known as Il-Gillieru, and his wife Rosi. Over the years the Restaurant has become a household name and an iconic fish restaurant. Until recent years the entire operations were run by second generation brothers Karmenu and Guzeppi Cremona. Today they are run by their succeeding children. Until June 2018, Stephen Cremona, son of the late Karmenu Cremona, together with his siblings, owned 50% of the business in Gillieru Limited. The remaining 50% was owned by Mr Cremona’s cousins.

The Hotel and Restaurant’s location offer a competitive advantage, being sited on a small peninsula at the water’s edge, offering spectacular sea views overlooking St. Paul’s islands. The small quay with fishing boats and square overlooked by the 17th century church add to the charm and character of this unique location.

The demand for 4-star accommodation in the area is quite strong corroborated by the significant number of large 4-star hotels in the area. The smallness of the Hotel and location will constitute a differentiated hotel product which can give more edge with its competition. This Hotel will satisfy a demand that particularly exists in this part of the island which is extensively supplied with large 4-star accommodation all providing multi food and beverage facilities.

The Property will undergo an immediate general upgrading project, which will include the replacement of the air-conditioning system, certain bathrooms, and other general upgrades. The Directors expect the upgrading project to have a cost of approximately €750,000, which will be primarily funded through the Bond Issue proceeds as detailed in section 18.1 of this Admission Document.

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.

HOW TO REGISTER TO BUY BONDS?

Orders will be accepted from the 23rd of November, 2018.

All orders must be submitted by not later than the 30th of November at 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 by contacting us on +356 25 688 888 or via email on [email protected] or through your finance advisor.