Gasan Finance Company p.l.c. launches Bond Issue at 6%
Gasan Finance Company p.l.c., a member of the Gasan Group of Companies, today announced the issue of 6 per cent Bonds due 2014 – 2016 for an aggregate principle amount of €15,000,000 with an option to increase the issue by a maximum of an additional €5,000,000 up to an aggregate principle amount of €20,000,000.
The Bonds, having a nominal value of €100 each, will be issued at par and shall bear interest at 6 per cent per annum payable semi-annually.
Subscriptions open on Monday 27 April 2009 and close on Thursday 30 April 2009 or earlier if the issue is fully subscribed. Applications may be made for a minimum of €1,000.
The proceeds from the Issue will be used to redeem the Gasan Finance Company p.l.c. Bonds 2008/11 which currently amount to €10.8 million, for the purpose of the general funding of the Issuer, to refinance part of the debt of the Gasan Group companies and / or to on-lend to Group companies. Past experience has shown that the Gasan Finance Company p.l.c. bond issues were over-subscribed.
At a news conference held today at Gasan Centre in Mriehel, Joseph A. Gasan remarked that this is the fifth issue of Bonds by Gasan Finance Company plc, which was the first Maltese company to issue Bonds in 1994. Since its origins over 80 years ago, the Gasan Group has diversified into five main sectors, namely Automotive, Property Development, Insurance & Financial Services, Mechanical & Electrical Engineering and IT & Communications. The Group employs circa 500 people.
Over the past years the Gasan Group registered encouraging profits. In 2007 the Group’s operating pre-tax profit amounted to €6.4 million, this in addition to a profit of €63 million arising from the disposal of its 50 per cent holding in Melita plc. Mr. Gasan said that 2008 was another positive year with operating results in line with those achieved in 2007.
“We believe this bond issue is a good medium to long term investment opportunity with an attractive coupon,” said Mr Gasan.
Further information may be obtained from the Prospectus dated 7 April 2009, copies of which, together with an Information Memorandum and Application Forms are available for collection during office hours from Gasan Finance Company plc, stockbrokers, participating banks and other authorized distributors, from Wednesday 15 April.
The Bonds will be redeemed at par between 31 May 2014 and 31 May 2016. An application has been made for them to be listed on the official list of the Malta Stock Exchange. Curmi & Partners Ltd are the sponsors of the Bond Issue while Bank of Valletta plc is the manager and registrar.