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IHI announce new €45 million Bond issue


International Hotel Investments P.L.C. announced the new issue of €45 million in unsecured bonds, with a coupon of 5.75% and maturity in 2025.

In addition the Company announced its intention to redeem its outstanding €35 million 6.25% International Hotel Investments p.l.c. Unsecured Bonds 2015-2019. In accordance with the relevant prospectus issued on 12th June 2009, the Company will be redeeming the stated bonds on July 11th 2015.

BOND ISSUE OVERVIEW

Issuer: International Hotel Investments p.l.c.

Aggregate amount: € 45 million

Coupon: 5.75% per annum

Face Value Denomination: € 100

Issue Price: € 100 per bond

Maturity: 13 May 2025

Interest payment date: On 13 May 2016 and on the same date every year thereafter until maturity

Minimum Investment: € 2,000 and multiple of €100 thereafter

Holders of the outstanding 6.25% International Hotel Investments p.l.c. 2015-2019 are entitled to exchange entirely or in part their respective holdings in exchange for a correspondent amount of the new bonds issued by the Company.

International Hotel Investments (Issuer)

International Hotel Investments (IHI) is a local listed company that owns and operates five-stars and commercial real-estate both in Malta and internationally. The company is set up as a holding entity that controls and manages each hotel, commercial property and their operations through a distinct subsidiary established within each property’s jurisdiction. The primary function of IHI is to act as the main financing vehicle to drive the Corinthia Group’s international expansion strategy and support business and property development.

The main local hotels operated by IHI are the Marina Hotel (St. Julians) and Corithian Hotel (St. Julians), while internationally the Company also operates five-star hotels such as the Corinthia Gran Hotel Royal & Residences in Budapest, the Corithia Hotel & Commercial Centre in St. Petersburg, the Corinthia Hotel and Spa in Lisbon and the Corinthia Hotel & Commercial Centre in Tripoli.

IHI has lastly reported revenues for €116.4 million at the end of 2014, and a loss before taxes of €29 million. The Company’s total assets reported over the same period totalled €1.01 billion, while total liabilities amounted to €417.2 million.

Corinthia Group of Companies (Parent company)

The Corinthia Group is the parent company of the issuer and it is a local limited company operating in four main core businesses: Hotel Investments, Hotel Management, Industrial Operations and Construction & Project Management. The Group owns 58.78% of IHI, which is the Hotel Investment Arm of the Group and it also act as the main investment and financing vehicle for the Group’s international expansion strategy.

Deadline for Submission of Applications

Application Forms mailed to holders of Exchangeable Bonds will close 30 April 2015

Applications for general public will close on 6 May 2015

Preplacement Offer will close on 29 April 2015

CLICK HERE FOR A COPY OF THE PROSPECTUS