MM Star Malta Finance p.l.c. announces 5.35% Secured callable Bonds maturing in 2029–2031 

MM Star Malta Finance p.l.c. has announced the issuance of €35,000,000 5.35% Secured Callable Bonds redeemable in 2029 – 2031 with a nominal value of €100 per bond to be issued at par. 

Please find the prospectus relating to the respective bond issue here.    

Business Overview 

The Issuer is a special purpose vehicle set up solely for the Bond Issue and depends on the Guarantor and Group companies for funding. The Guarantor, a holding company for the MM Star Group, was established to invest in and operate Yotel Edinburgh. It relies on Millemont Capital Partners for intellectual property and business support services, which it also extends to MM Star BidCo.

Founded in 2021, Millemont Capital Partners is a private equity real estate investment platform with a focus on acquiring sustainable hospitality assets in with durable fundamentals. Millemont’s core strategy includes: 

• Acquiring income generating, lifestyle hotels in core locations and employing an active asset management strategy to deliver strong risk-adjusted investment returns; and 

• Acquiring value-add and opportunistic hotels and undertaking extensive repositioning programmes to deliver above market returns. 

To date, the firm has acquired five hotels and aims to add ten more to its portfolio over the next three years. Alongside growth, Millemont is strongly committed to sustainability, actively working to reduce the carbon footprint of its assets through both development and operational efficiencies, with the goal of operating as close to net zero as possible. 

Use of proceeds 

The aggregate proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €34,200,000, are intended to be utilised by the Issuer for the purpose of refinancing the Acquisition of the Yotel Edinburgh. The Issuer will on-lend such aggregate proceeds (net of Bond Issue expenses) to MM Star HoldCo, further to which:  

1. an amount of approximately €18,800,000 shall be further on-lent by MM Star HoldCo to MM Star BidCo under an existing intra-group loan facility in place between MM Star HoldCo (as lender) and MM Star BidCo (as borrower). Such amount shall be utilised by MM Star BidCo for the purpose of refinancing the Facility Agreement, an outstanding loan facility by and between Clydesdale Bank plc (as lender) and MM Star BidCo (as borrower) in relation to the Acquisition of the Yotel Edinburgh, as further detailed in section 6.2.3 of the Registration Document. 

2. an amount of approximately €15,400,000 shall be utilised by MM Star HoldCo for the purpose of refinancing, in part, its borrowings under the Shareholders’ Funding Agreement which were previously advanced by the Partnership to finance the Acquisition of the Yotel Edinburgh. 

How to apply 

Our award-winning platform, Moneybase is available as an app on both Android and IOS app stores and on the web. 

Apply online, by looking up the following instrument on Moneybase and specify the amount of bonds for which you would like to subscribe: 

• 5.35% MM Star Malta Finance Plc 2029-2031

The minimum application amount is €2,000 and in multiples of €100 thereafter. 

The offer is currently open for applications, and the issuer reserves the right to close the offer period at an earlier date. 

If you need assistance our ISO-certified customer care team is available to assist 7 days a week. Contact us on +356 25 688 688, or via live chat on the Moneybase app. 

Calamatta Cuschieri Investment Services Limited is a member of the Maltese Investor Compensation Scheme. Instruments entrusted with us are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09). 

This is a complex instrument. The value of the investment can go down as well as up. Prospective investors wishing to subscribe to the bonds should make their own assessment after reading the Prospectus to fully understand the features of the investment and the potential risks and rewards associated with the bonds.  

Calamatta Cuschieri Investment Services Limited (CCIS), C13729, is licensed by the MFSA to undertake investment services business under the Investment Services Act, Cap 370. CCIS’ registered address is at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara, BKR 9034, Malta.