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SP Finance P.L.C. 4% Secured Bonds 2029 – NOW CLOSED

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BOND ISSUE IS NOW CLOSED DUE TO OVER SUBSCRIPTION

SP Finance P.L.C. has announced the issue of €12,000,000 of 4% Secured Bonds redeemable in 2029, 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 +356 25 688 888.

BUSINESS OVERVIEW:

The SP Group are involved in the tourism and hospitality industry, operating the Sea Pebbles Boutique Hotel situated at No. 88/89, The Strand, Sliema, a nine-story block from which the Group operates a 52-room hotel. The Group intends to eventually construct and extend the Sea Pebbles Boutique Hotel and to add a further 150 rooms, with construction planned to take place during 2021 and 2022.

Throughout the Group’s long-standing history, it has financed its acquisitions by bank finance and retained profits, which have gradually grown as its operations increased as a result of the availability of more rooms. The hard work and efforts of the directors have resulted in the current business operation, property and other assets

The Group is still looking to further increasing its property portfolio and, following the Bond Issue, it will be able to proceed with the acquisition of the Apartments and the Guesthouse, consequent to which the Group is planning to redevelop the whole property into a 202 room hotel.

COMPANY OVERVIEW:

The principal object of the Issuer is to carry on the activities of a financing company to the Group. Its business is limited to the raising of capital for the financing of capital projects and the loaning of such capital to Group subsidiary companies, the collection of interest from Group entities and the settlement, in turn, of interest payable on capital raised from third parties, in the circumstances via the issue of listed bonds.

As the Issuer does not carry out any trading activities itself, it is economically dependent on the business prospects of the Sea Pebbles Group and, therefore, the trend information relating to the Sea Pebbles Group has a material effect on its financial position and prospects.

USE OF PROCEEDS:

The proceeds from the bond issue, which net of bond issue expenses are expected to amount to approximately €11,650,000, shall be used for the following purposes in the following amounts and order of priority:

  • An amount of €2,500,000 will be used for the purpose of funding the acquisition of the Apartments by the Guarantor;
  • An amount of €2,500,000 will be used for the purpose of funding the acquisition of the Guesthouse by the Guarantor;
  • An amount of €2,499,236 will be used for the purpose of repaying an outstanding financing facility taken out with HSBC Bank (Malta) plc;
  • An amount of €3,000,000 will be used to finance the refurbishment and upgrade of the San Pawl’s Hotel;
  • An amount of €600,000 will be used to finance the development of the Pebbles St Julians Hotel;
  • The remaining balance of circa €550,764 of the net Bond Issue proceeds will be retained by SP Investments Limited to be used for the general corporate funding purposes of the Group, to be loaned interest free to Group subsidiaries as and when required.

Investors are strongly advised to carefully read the risk factors in the Prospectus.

HOW TO REGISTER TO BUY BONDS?

All orders must be submitted by not later than the 2nd of May, 2019 @ 12:00 pm (Closing date).

The offer may close at an earlier date without prior notice in case of over-subscription.

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

A copy of the Prospectus is available HERE

Orders may be placed by reaching out to your Financial Advisor or contacting us on +356 25 688 688, via email on [email protected], or via live chat on www.cc.com.mt.

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