Corinthia Finance has announces the issue of a e15 million nine-year bond bearing an interest rate of 6.25 per cent per annum. The bonds are guaranteed by Corinthia Palace Hotel Company Limited (CPHCL) and are redeemable in 2019 but may be redeemed earlier, as from 2016 at the issuer’s option.
The net proceeds from the bonds will be principally used to redeem the outstanding amount of the 6.5 per cent bonds which mature on 8 April 2010, and amounts to e14,273,700. The bonds will be interchangeable with the 6.25 per cent Corinthia Finance Bonds issued in August 2009 and will be merged as one bond on the next interest payment falling due in September 2010.
Preference will be given to applicants holding the maturing 6.50 per cent Corinthia Finance plc bonds who surrender their existing holding in favour of a holding in the new bonds.
“The past year has seen the Corinthia Group furthering its growth objectives and we are grateful to the public for repeatedly supporting our strategy. At a time when the hospitality industry is characterised by strong and increasing competition, the Corinthia Group has adopted a strategy aimed at increasing its resilience in this changing environment. This strategy, which has seen Corinthia’s interests spread over a wider geographical area and cover a bigger diversity of operations, has acted as a buffer against the adverse effects of these challenging times,” observed group chairman and chief executive officer Alfred Pisani.
Through its subsidiary companies, CPHCL is currently engaged in completing existing projects and developing new sites in various overseas territories with an approximate total value of over e850 million worth of investments.
The group is currently engaged in developing and completing three projects in Libya (Benghazi, Tripoli and Janzour), another development in London and in St Petersburg Russia.
The Corinthia Hotel in London, in particular, is currently one of the biggest projects of its kind being carried out in the city. The £270 million development, which is few months away from completion, boasts a 40,000 square metre prime site straddling Northumberland Avenue and Whitehall Place, with panoramic views over Trafalgar Square, the River Thames and all the major sights of Westminster. The project will feature a 300-bedroom luxury hotel, having the largest bedrooms in London and including 45 suites. A 3,000 square metre spa, unique in its design and scope, will complement the hotel. Furthermore, 12 ambassadorial apartments, the largest one occupying over 1,000 square metres, are being developed at the luxury end of the market, for eventual use as prime residences in central London. The project is being hailed as the first new grand hotel in London for the 21st century.
Application forms and copies of the Prospectus are available from 16 February from authorised financial intermediaries. Subscriptions open on 1 March and close on 5 March or earlier if over-subscribed.
The bond is managed by Bank of Valletta, which is also acting as Bond Registrar. Charts Investment Management Service Limited is sponsoring stockbrokers while GVTH Advocates serve as legal counsel to the bond.