Von der Heyden unsecured notes issue raises questions after 2022 €35 million bond issue
Von der Heyden Group Finance p.l.c. has announced it has received regulatory approval from the Malta Financial Services Authority for the issue of a maximum of €5,000,000 unsecured notes due in 2026 of a nominal value of €1,000 per note
by Paul Cocks
Added statement by Von der Heyden Group
Von der Heyden Group Finance p.l.c. has announced it has received regulatory approval from the Malta Financial Services Authority for the issue of a maximum of €5,000,000 unsecured notes due in 2026 of a nominal value of €1,000 per note.
These will be issued at par, pursuant to and in terms of a prospectus dated 22 August 2023.
This follows the launch by the company, in October 2022, of a ten-year €35 million bond issue with an annual interest rate of 5% on the Official List of the Malta Stock Exchange.
An industry expert in fact told Business Today that this new unsecured notes could very well be needed to pay the coupon on the previous bond.
Another source in the industry said he could not confirm the reason for the new notes.
"But if it's true that the company needed to issue €5 million unsecured notes to cover its obligations on a bond listed less than a year ago, then perhaps the regulatory authority needs to revise its criteria and expediency when granted approval for bond issues," he said.
€5,000,000 unsecured notes
The Global Note in the new issue will be issued to Calamatta Cuschieri Investment Services Limited, as the Nominee and Placement Agent in an aggregate amount of up to €5,000,000 with a nominal value of €1,000 per Note, at the rate of 7.4% per annum and redeemable at par on 22 September 2026.
Investors in Malta can participate in the Global Note by virtue of the subscription to Participation Notes (as defined in the Prospectus).
The Notes shall be issued with the guarantee of Timan Investments Holdings Limited (C 63335).
The Global Note and Participation Notes will not be listed on the Malta Stock Exchange or on any other regulated market.
The offer period will close on 15 September 2023. Applications for subscriptions to the Participation Notes may be made through the Nominee and Placement Agent subject to a minimum application of €5,000 and in multiples of €1,000 thereafter.
Von der Heyden Group sent in this statement in reply to the article:
The Von der Heyden Group refutes the apparent inference that the recently approved unsecured notes are being issued in order to pay the interest due in December on the current bonds in issue and this on two grounds:
(1) The Unsecured Notes Prospectus is available for review on the investors section at vdhgroup.com and this clearly states the purpose of the new issue, principally relates to therefinancing of the renovation works at Villa Diodati in Tuscany, earmarked to open next year as a boutique hotel ona 2,000m estate. This storied hillside villa in Lucca perfectly aligns with the Group’s Cugó Gran hospitality brand, providing an exclusive touch in a new market. The Group has a real estate development track record for high-end finishes and quality, and in turn has achieved record prices for its award-winning projects when sold. Its international roots and local presence, have played a pivotal role in the Group's consistent growth, even during economic downturns.
(2) In addition, a review of the recently published interim financial statements of the Von der Heyden Group Finance plc clearly indicates that, even prior to the issue of the Unsecured Notes, the finance company already has in cash reserve the interest payment that is due to the bondholders in December this year.
