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Stivala Group Plc. 4% Secured Bonds 2027

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Stivala Group plc is offering €45,000,000 Secured Bonds having a nominal value of €100 each, which will be redeemable in 2027. The Bonds are guaranteed by the Guarantor, Carmelo Stivala Group Limited. The Bonds will be issued at par and bear interest at the rate of 4 % per annum payable annually on 18 October each year until Redemption Date.

If you wish to apply for these bonds see information at the bottom of this article or apply via our CCTrader platform.

BUSINESS OVERVIEW

Carmelo Stivala & Sons Limited has evolved over a number of years, dating back to its origins in 1979 providing construction and development of real estate to personal and corporate customers. Over the years the Group shifted its focus from an exclusively construction company to a developer of real estate, through the acquisition of real estate, development of those sites and their operation through leases of commercial and residential properties and hotel accommodation.

USE OF PROCEEDS

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €44,380,000, will be used by the Issuer for the following purposes, in the amounts and order of priority set out below:

1) Re-financing existing bank loans: an amount of circa €9,129,000 of the proceeds from the Secured Bonds will be used to re-finance outstanding Group banking facilities with FimBank p.l.c. and Bank of Valletta p.l.c., which funds were originally principally utilised to acquire various properties and for capital expenditure purposes;

2) Acquisition and development of 196, Main Street, St Julian’s: the amount of €9,000,000 will be used to finance the acquisition of 196, Main Street, St Julian’s and development thereof into a block of luxury residential apartments, as detailed in the Registration Document;

3) Acquisition of the remaining half of Qui Si Sana Boutique Apartments, Sliema: the amount of circa €11,448,000 is to be utilised for the purpose of acquiring nine apartments, 19 garages and the remaining undivided share of an office at Qui Si Sana Boutique Apartments, Sliema.

4) Acquisition of property at Marguerite Mangion Street, St Julian’s: an amount of circa €7,706,200 will be utilised for the purpose of acquiring the property situated in Marguerite Mangion Street, St Julian’s;

5) Development of Azur Hotel: an amount of €4,500,000 shall be used to develop the proposed Azur Hotel as further described in section 4.6 of the Registration Document; and

6) Other property developments: the remaining balance of the net Bond Issue proceeds equivalent to circa €2,596,800 shall be applied towards the costs of acquisition of other properties in accordance with the Group’s business development strategy and/or to fund part of the Group’s ongoing capital expenditure on own properties.

COMPANY OVERVIEW

Stivala Group Finance Plc was set up as the holding company and finance arm of the Group on 21 August 2017 and is the principal vehicle for further expansion of the Group’s hospitality business and mixed use developments. The Issuer holds 98% of the shares in the Guarantor that in turn holds the shares in the underlying operating Subsidiaries. The remaining 2% of the shares in the Guarantor are held by the Group’s founder, Mr Carmelo Stivala.

The Group’s business model remains primarily reliant on the acquisition of real estate for development or re-development and the subsequent operation of that real estate as either (a) 3 star hotel assets, hostels; or (b) residential and commercial property for lease to third parties. In addition, the Group’s assets and their operation are concentrated in Malta and are accordingly intimately dependent on the tourism industry and property rental market in Malta.

The positive trend in the rental market was experience by the Group and is well positioned to continue to benefit from such demand given that most of its residential properties are situated in the Gzira/Sliema area, which is a highly desirable location in Malta. Income from leases of retail units has also increased on an annual basis and is set to maintain a trend of moderate but consistent year-on-year growth. The Group intends to further expand its portfolio of residential units for rental purposes through acquisition and/or further development of its own properties.

HOW TO REGISTER TO BUY BONDS?

Orders may be placed via CC Trader or by contacting us on 25 688 688.

Orders will be accepted from the 27 September 2017. Applications must be for a minimum value of €2,000 and multiples of €100.

A copy of the prospectus is available HERE

Calamatta Cuschieri Investment Services Ltd is acting as a licensed stockbroker and financial intermediary for this bond issue.