Hili Finance Company Plc 3.85% Unsecured Bonds 2028

Hili Finance Company Plc Bond Issue is now closed due to over subscription

Hili Finance Company Plc has announced the issue of €40,000,000 of 3.85% Unsecured 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 apply via our CCTrader platform.

BUSINESS OVERVIEW:

Hili Finance Company Plc is offering 40 million Unsecured Bonds having a nominal value of €100 each, which will be redeemable in 2028. The Bonds are guaranteed by the Guarantor, Hili Ventures Ltd. The Bonds will be issued at par and bear interest at the rate of 3.85% per annum payable annually on 18 July 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 €39,400,000, will be on-lent to the Guarantor by the Issuer pursuant to a loan agreement between the Issuer and the Guarantor and shall be utilised for the following purposes, in the amounts and order of priority set out below:

i) an amount of circa €16,500,000 of the net proceeds from the Bonds will be used to re-finance outstanding banking facilities as follows: (a) Hili Properties p.l.c. will re-finance circa €6,000,000 of bank loans which were originally utilised to finance acquisition of investment property; (b) 1923 Investments p.l.c. will apply circa €6,500,000 to repay in full a bank loan which was originally used to part-finance the acquisition of the Apple business in Poland; and (c) the remaining balance of €4,000,000 will be used by 1923 Investment p.l.c. to re-finance the outstanding loan initially sanctioned for the acquisition of the logistics operation in Poland;

ii). the amount of circa €13,800,000 will be used to re-finance an outstanding balance with APM Holdings Limited (a major shareholder of Hili Ventures). This balance was initially applied for the purpose of part financing the acquisition consideration of investments by Premier Capital p.l.c. in Romania (€10,800,000) and Hili Properties p.l.c. in Latvia (€3,000,000);

iii). an amount of circa €9,100,000 will be applied to fund forthcoming capital expenditure of Hili Ventures as follows: (a) circa €4,000,000 will be allocated to Hili Properties p.l.c. to part-finance acquisitions and development of investment property in the Baltics and Romania; (b) circa €3,400,000 will be utilised by 1923 Investments p.l.c. primarily to fund the expansion of the Apple retail operation in Romania and to implement a stronger enterprise resource planning (ERP) system to enhance the efficiency and effectiveness of its operations; and (c) circa €1,700,000 will be used by the Guarantor to fund residual group-wide investment opportunities.

COMPANY OVERVIEW:

Hili Ventures Ltd was established in 2012 and principally acts as the investment holding company of Hili Ventures to which it provides management and consultancy services. Hili Ventures Ltd is principally engaged, through Subsidiaries, in investments that are predominantly involved in the business sectors described below:

· Premier Capital p.l.c. is involved in the operations of McDonald’s restaurants in Estonia, Greece, Latvia,

Lithuania, Malta and Romania.

· 1923 Investments p.l.c. (formerly PTL Holdings p.l.c.) is the investment operating division of Hili Ventures, other than the operation of McDonald’s restaurants as described hereinabove and the property division which is managed by Hili Properties p.l.c., 1923 Investments p.l.c. is presently engaged in the sale and distribution of Apple products as an Apple Premium Reseller in Poland, Hungary and Romania; the sale, maintenance and servicing of information technology solutions, security systems and the provision of electronic payment solutions; and transport and logistics in Malta and Poland, including air, road, sea and rail freight forwarding, clearances and deliveries, customs brokerage, parcel services,

Warehousing, ship agency, ship-to-ship operations and project cargo.

· Hili Properties p.l.c. is the parent company of the property division of Hili Ventures, and owns and manages a property portfolio comprising commercial and retail property in Europe.

· Motherwell Bridge Industries Limited (“Motherwell Bridge”) is primarily engaged in providing engineering services related to port equipment and crane assembly. Through the acquisition of Techniplus S.A. in 2016, Motherwell Bridge is now also involved in providing maintenance services of port equipment and crane assembly in Morocco and neighbouring countries.

HOW TO REGISTER TO BUY BONDS?

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

Orders will be accepted from the 10th of July 2018 and must be submitted by not later than the 17th July 2018 (Closing date). In case of oversubscription the bond will close early and unfortunately no further orders will be accepted.

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

A copy of the prospectus is available HERE.