24 APRIL 2002

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Hotel San Antonio Lm2 million bond subscriptions open tomorrow

Hotel San Antonio has announced the issue of 20,000 bonds of Lm100 each. The bonds carry an interest rate of 7.5%, with interest payable semi-annually and hold a maturity date of May 2012.

Copies of the offering memorandum and application forms are available at all branches of Bank of Valletta plc, APS Bank Ltd, Lombard Bank Malta plc, stockbrokers, and other financial intermediaries.

Meanwhile, subscriptions to acquire the bonds open tomorrow and close on Friday, 10 May, or earlier at the company’s discretion if the issue is oversubscribed. Applications are subject to a minimum of Lm500 and multiples of Lm100 thereafter.

Bank of Valletta has been appointed manager and registrar for this bond issue, while Vincent J. Rizzo and David A. Curmi - respectively of the stockbroking firms Rizzo, Farrugia & Co (Stockbrokers) Ltd and Curmi & Partners Ltd - are the joint sponsoring stockbrokers. The financial and legal consultants are, respectively, Deloitte & Touche and Camilleri Preziosi Advocates.

Hotel San Antonio plc has reserved the right to issue an additional Lm500,000 in bonds at the same price, in the event that the Lm2 million issue is oversubscribed. Hotel San Antonio plc will set up a capital reserve fund to cover the redemption of the bonds on the redemption date.

An application has been made for the bonds to be admitted to the Alternative Companies List of the Malta Stock Exchange.

Hotel San Antonio plc owns the Grand Hotel Mercure Coralia San Antonio, a joint venture between Alpine Holdings Ltd and Sea Bank Catering Co Ltd, each of which hold 50 per cent of the issued ordinary share capital of the company. The Grand Hotel Mercure Coralia San Antonio is a resort hotel with full conference and health and fitness facilities and extensive landscaping areas. It has been built on the site of the former Hotel Hyperion in the heart of Bugibba. It is rated ‘four star plus’, and has 264 rooms, 10 of which are suites and 22 penthouse suites.

The Grand Hotel Mercure Coralia San Antonio is under a long-term management contract to Accor, the world’s second largest hotels and leisure operator. Accor manages more than 3,500 hotels (800,000 beds) in 140 countries. The brands that form part of the Accor group include Sofitel, Mercure, Novotel, Ibis, Etape, Red Roof Inns, Motel 6, Libertel, and Formule 1. The group is also actively involved in catering outlets and casinos.

Accor is already operating the hotel and is successfully marketing it through its worldwide sales network and leading Maltese operators. It has achieved particular success in the French market, and has already hosted several large conference groups.

The net proceeds of the Lm2 million bond issue will be used to pay capital creditors for the construction and completion of the hotel. If the over-allotment option is exercised, the net proceeds from the additional amount raised will be used to repay existing long-term bank facilities.


Copyright © Network Publications Malta.
Editor: Saviour Balzan
The Business Times, Network House, Vjal ir-Rihan San Gwann SGN 07, Malta
Tel: (356) 21382741-3, 21382745-6 | Fax: (356) 21385075 | e-mail: editorial@networkpublications.com.mt