Following regulatory approval received on Wednesday, 1st July 2015, Mediterranean Investment Holding p.l.c. (MIH) have announced the issue of €20,000,000 nominal worth of bonds bearing a coupon of 5.5%. The bonds will be unsecured and mature in 2020 and will be underwritten by the shareholders of the Issuer and guaranteed by Corinthia Palace Hotel Company Limited; and the redemption of €20,000,000 7.5% Mediterranean Investments Holding p.l.c. Unsecured Bonds 2015.
The bonds will be guaranteed by Corinthia Palace Hotel Company Limited with a nominal value of €100 per Bond, issued at par.
Furthermore, the Company will be redeeming the €20,000,000 7.5% Mediterranean Investments Holding p.l.c. Unsecured Bonds 2015 (ISIN: MT0000371220) in accordance with the terms of the prospectus dated 15th July 2008.
The Issuer will be granting holders of the Maturing Bonds as at 25th June 2015 (that is, up to and including trading activity on 23rd June 2015 – the “Cut-Off Date”) preference to subscribe to the New Bonds up to the limit of their existing holding, subject to a minimum amount of €2,000, by surrendering their respective holding in the Maturing Bonds – (the “Exchange Offer”). Holders of the Maturing Bonds will also be given the opportunity to invest additional amounts in the New Bonds in respect of any balance unsubscribed for during the Exchange Offer.
Any balance thereafter will be allocated in the following order of preference:
(a) bondholders of the Issuer’s other listed bonds held as at the Cut-Off Date;
(b) bondholders of International Hotel Investments p.l.c. and Corinthia Finance p.l.c. held as at Cut-Off Date; and
(c) an Intermediaries’ Offer.
In the case where holders of Maturing Bonds on the Cut-off Date do not wish to exchange their investment, or wish to exchange only part of their investment for the New Bonds, they will receive, as the case may be, either the principal sum or the remaining balance of the principal of their holding on 4th August 2015.