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Mercury Projects Finance P.L.C. – 2 New Bond Issues (Now Closed)

Mercury Projects Finance

(Now closed – bonds have been fully subscribed) 

Mercury Projects Finance P.L.C. has announced the issue of €11,500,000 of 3.75% Secured Bonds redeemable in 2027 (the “Series I Bonds”), with a nominal value of €100 issued at par and the issue of €11,000,000 of 4.25% Secured bonds redeemable in 2031 (the “Series II Bonds”), 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 +25 688 888.

COMPANY OVERVIEW:

The principal object of the Issuer is to carry on the activities of a finance and investment company in connection with the ownership, development, operation and financing of the business by lending or advancing money and by borrowing or raising finance for the activities of the Group.

The Issuer was registered and incorporated on the 16th of January 2019 as a special purpose vehicle to act as a finance company for the needs of the Group and is dependent on the business prospects and operating results of the Group.

USE OF PROCEEDS:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €22,050,000, shall be used by the issuer to make a loan facility to the Guarantor, bearing interest at 4.75% per annum as regards the firstly drawn portion thereof up to the amount of €11,500,000 whereas the balance will bear interest at 5.25% per annum, to be used as follows:

1. An amount of circa €5,650,000 will be used to re-finance the outstanding banking facilities of the Guarantor with Lombard bank Malta P.L.C., which funds were originally principally utilised to acquire the Mercury Site,

2. An amount of circa €16,400,000 will be used to finance part of the fees and costs due by the Guarantor to Mercury Contracting Projects Limited in respect of development and finishing works on the project.

BUSINESS OVERVIEW:

The ultimate beneficial owner of the Guarantor and of the Group, Mr Joseph Portelli has a long trading history in the acquisition, development, management and operation of real estate developments that consist principally of hotels, residential, office and retail property.

The group itself exists and operates principally for the purposes of the Mercury Tower project. Its business model remains primarily reliant on the development of the Project within the acquired Mercury site and the subsequent sale of airspaces for development of accommodation serviced apartments to third parties and the operation of parts thereof as a hotel, along with the rental of commercial property to third parties.

The Project itself will consist of mixed use developments, including serviced apartments, commercial and retail outlets, as well as a 5-star Hotel, and will be complemented by a 400-car parking facility underlying the Mercury Site and servicing the owners and users of the various elements of the Project.

At the heart of the Project will be a 31-storey Tower as well as 2 underground storeys, with approximately 19,754 square meters of gross floor area, which will mainly consist of 275 apartments, the majority of which are intended for sale to third parties, with some of these at the uppermost level intended to be retained by Guarantor as part of the Hotel arrangement.

HOW TO REGISTER TO BUY BONDS?

Applications must be for a minimum value of €2,000 and multiples of €100. All orders must be submitted by not later than the 27th of March at 12:00pm (Closing date). In case of over subscription the bond will close early and unfortunately no further orders will be accepted.

A copy of the prospectus is available HERE

Orders may be placed by contacting us on +356 25 688 888 or via email on [email protected], or through your Financial Advisor.

Calamatta Cuschieri Investment Services Ltd is acting as Sponsor and Registrar for this bond issue.