“ AX Investments plc has launched €40,000,000 Bonds due in 2024, at an interest coupon of 6% of a nominal value of €100 per bond at par. The Bonds are guaranteed by AX Holdings Limited, the parent company of AX Investments plc. A total of €21 million from the net Bond proceeds will be used to finance the development of a retirement complex and care home in Naxxar, while another portion will be used to finance the redemption of the €11.6 million 6.7% bonds 2014-2016 (“Maturing Bonds”) which will be redeemed early on 15 December 2014. The Company is giving existing bondholders preference to subscribe to the Bonds by surrendering their respective Maturing Bonds. “The existing bondholders are being given a guaranteed allocation for the nominal amount of the existing bonds currently held.” This was announced by the Chairman of AX Investments plc Angelo Xuereb during the launch of the Bond Issue to all financial intermediaries, held at The Palace Hotel, Sliema.
Speaking about AX Holdings, Mr Xuereb said that “as the guarantor of these bonds, AX Holdings Ltd needs no introduction. The company was set up in the seventies and is presently involved in three core sectors of the Maltese economy, namely construction, hospitality and development. Over the next two years the company will be diversifying its business operation by moving into retirement and care homes, with the opening of Hilltop Gardens Care Home & Residences. The complex will be a green building with 146 retirement residences and 104 care home rooms. It will be built over a period of 21 months and will be completed in 2015 with a total investment of €42 million.”
Mr Xuereb added that, “Hilltop Gardens will be an ideal place for independent luxury living where all the needsof the residents will be catered for in style and comfort. The complex will offer numerous facilities to enable the residents to enjoy a full and active life including serene gardens and open air recreational space, pool, fitness centre, hobby centre, hair salon, pub, library, restaurant and a chapel. All units will be designed to high specifications and will offer personalised services on demand. The company has also recruited Jacqueline Camilleri as CEO, who has a wealth of experience in this sector, to oversee the project from the outset.”
The launch was also addressed by the Group’s financial director, Michael Warrington who spoke about the financial performance of the Group. He said that the results of the first quarter of 2014 have already shown that 2014 will be another strong year for the Group. Turnover in the hospitality sector is up over previous years and exceeding budgets. Furthermore the forward booking position for summer 2014 is also extremely encouraging. Mr Warrington also spoke about the construction and development side of the business which have always been the main pillars of the Group and are also experiencing good performances.
Further information about the Bonds can be obtained from the Prospectus dated 3 February 2014, copies of which, together with application forms are available from bank branches and authorised financial intermediaries. Applications for Bonds can be made for a minimum of €1,000.