On 8 October, Hal Mann Vella Group plc issued a formal notice in connection with the issue of €30 million Secured Bonds.

The Bonds will be secured by a first-ranking special hypothec over the Hypothecated Property which comprises the Hal Mann factory, showroom and adjacent land measuring circa 22,300 square metres (owned by the Issuer) as well as a piece of land measuring 5,200 square metres and 50% of a warehouse complex (owned by the Guarantor Sudvel Ltd). The Hypothecated Property is located in the limits of Lija/Mosta and is valued at €27.5 million. Moreover, bondholders will be granted a first-ranking general hypothec over the remaining assets of the Issuer and Guarantor. As at 31 December 2013, the carrying value of all the assets of the Hal Mann Vella Group was €60.6 million.

The net proceeds from the Bond issue, estimated at €29.3 million after issuance costs, will be principally used by the Issuer for the following purposes:

  • the first €13.7 million will be used to refinance an equivalent amount of bank loans held by various subsidiaries of the Issuer;
  • to finance the modernisation of the Hal Mann Vella factory and the investment in new plant and machinery (circa €5 million);
  • to finance the construction and development of a mixed used commercial property over a land measuring 5,200 square metres situated in Pantar Street, Lija (circa €7 million);

The balance will be used for general corporate funding purposes of the Group (circa €3.6 million)

Time-table deadline:

Placement: Thursday 23 October at 10.00 hrs.

General Public: Monday 27 October at 08.30 hrs.

A copy of the prospectus is available HERE.

Orders can be entered directly through Webtrader or by contacting your respective financial advisor on 25 688 688, e-mail on [email protected].