Zammit Finance Plc has announced the issue of € 6 million in Secured bonds maturing in 2022, featuring an early Call Option in 2020, and an annual coupon of 5.25%. The Company has also announced that, although the new bonds will be publicly offered to the members of the public, this issue will not be listed on the Malta Stock Exchange.
Zammit Finance Plc. (ISSUER)
Zammit Finance Plc. is a Special Purpose Vehicle public company incorporated in Malta and a wholly owned subsidiary of Zammit Holdings Limited (the Group), for which the company acts as primary financing arm. As such, the issuer is mainly engaged in financing activities to provide the necessary operating funds required by the Group and its operating subsidiaries. Zammit Finance Plc’s core business focuses on the purchase of Bills of Exchange and Trade Receivable related to the main Group’s operations, as well as on the issuance of financing instruments such as bonds and other types of debt on behalf of the Parent Group.
Zammit Holdings Ltd. (GROUP ENTITY)
Zammit Holdings Ltd. is the parent and holding company of the Group. The Group’s core business is mainly centred on the import, distribution and servicing of cars and other vehicles from overseas markets such as the UK and Japan. The primary operating subsidiary of the Group is J. Zammit Ltd., a privately held company, which directly handles the motor vehicles import operations, distribution channel and servicing business.
BOND ISSUE OVERVIEW
Issuer: Zammit Finance Plc
Aggregate amount: € 6,000,000
Coupon: 5.25% per annum
Face Value Denomination: € 1,000
Issue Price: € 1,000 (par)
Maturity: 30th September 2022 unless otherwise redeemed at the issue’s sole discretion on any day during the Designated Optional Redemption Period.
Call Option Dates: any day between 30th September 2020 and 30th September 2022
Interest payment date: 31st March and 30th September 2016, and on the same days thereafter until maturity in 2022.
Minimum Investment: € 1,000 and multiple of € 1,000 thereafter
The Company intends to use the net proceeds of the sale of the newly issued bonds as follows:
- To acquire existing hire purchase trade receivables relating to motor vehicle sales on a “with recourse” basis from J. Zammit Ltd and Related Company(ies).
- To acquire new bills of exchange relating to motor vehicle sales drawn by J. Zammit Ltd. on a monthly basis on a “with recourse” basis.
Deadline for Submission of Applications
- 26th November 2015 – Deadline for all Applications
A copy of the Full Prospectus is available here.
The Notes are complex financial instruments and may not be suitable for all types of retail investors.
To evaluate suitability the financial adviser needs to assess the below key areas on behalf of potential investors
1. the potential investor’s knowledge and experience to understand the related risks
2. the Notes meet the investment objectives of the potential investor
3. the potential investor is able to bear the investment and financial risks
Experienced investors, who are not seeking financial advice, will still need to demonstrate that they are familiar with these type of complex financial instruments by disclosing their knowledge and investment experience prior to placing orders.