Island Hotels group (IHG) announced that it will be issuing 350,000 6% Bonds 2024 of a nominal value of €100 per Bond issued at par for an aggregate of €35,000,000.
Up to an aggregate amount of €2,500,000 of the New Bonds shall first be allocated to those who are existing shareholders or Island Hotels Group employees as at close of business on the 9 May 2014. Following such allocations, any remaining New Bonds shall be allocated to applications submitted by the general public without priority or preference.
The net proceeds from the Bond issue, estimated at €34.35 million after issuance costs, will be principally used by the Issuer in the following order of priority:
i) to on-lend circa €16 million to Bay Point Hotel Limited, a fully-owned indirect subsidiary of the Issuer, to carry out refurbishment works as well as construction and finishing works of two additional floors and a conference centre;
ii) to finance the development and operation of the COSTA® Coffee brand in the East Coast of Spain, the Balearic Islands and the Canary Islands (circa €4 million);
iii) the remaining balance of the net proceeds from the Bond Issue will be used for general corporate funding purposes, including the early repayment of some bank loans and in particular the reduction in the Group’s overdraft balance.
Orders may be raised directly through Webtrader. Applications are to be received not later than Friday 23 May at 17.00 hrs.
Please click HERE for a copy of the summary note.
Please click HERE for a copy of the application form.