AST Group p.l.c. 6.25% Secured Bonds 2033

AST Group p.l.c. (the “Issuer”) has announced the issuance of €8,500,000 6.25% Secured Bonds maturing in 2033, having a nominal value of €100 per bond issued and redeemable at par (the “Bonds”) subject to the results of existing bondholder meeting scheduled for 10^th May 23 as per recent company announcement. 

The Issuer shall be calling a meeting of the 5.5% Ast Group Plc Unsecured Bonds 2028 (the “2018 AST Prospects MTF Bonds”) bondholders to consider the early redemption of the 2018 AST Prospects MTF Bonds in terms of the Company Admission Document dated 17 October 2018. Upon redemption of the 2018 AST Prospects MTF Bonds, all bondholders of the said 2018 AST Prospects MTF Bonds will be afforded a premium in the form of payment of a redemption price of one Euro (€1) per 2018 AST Prospects MTF Bond held as at the Cut-Off Date (as defined in the Prospectus of the Issuer dated 20 April 2023 (the “Prospectus”)). 

Preference for the application of the Bonds shall be given to bondholders of the 2018 AST Prospects MTF Bonds for their existing holding in the 2018 AST Prospects MTF Bonds. 

 A copy of the Prospectus is available here.    

If you decide to apply for these bonds, kindly follow the “How to Apply” section at the bottom of this news item or contact us on +25 688 688 or [email protected] or via live chat on www.cc.com.mt for more information. 

BUSINESS OVERVIEW: 

In December 2013, Damask Investment Limited, a company registered in Malta with company registration number C 63147, commenced trading in roasted guar meal korma and fish meal from Malta. In the following months, Damask Investment Limited expanded its operations, both in terms of animal feed products traded as well as locations. 

Over the years, the Group introduced other animal feed products to its product range and now trades in roasted guar meal korma, fish meal, Distiller’s dried grains with soluble (“DDGS”) and HiPro Sunflower meal, corn, soya meal, feed wheat and barley. Hence, the animal feed products are sourced from suppliers based in India, Morocco, South Africa, Bulgaria, Ukraine, Moldova, Hungary, Slovakia, Serbia and Romania which products are then exported to customers in Greece, Spain, France, Cyprus, Malta, Turkey and Dubai. The Group has working relationships with its suppliers and customers spanning several years. 

The Group acquired a vessel in 2018 to carry its own cargo, time-chartered various vessels from third parties, or chartered third-party vessels for a specific voyage, to continue growing its fleet whilst expanding its animal feed operations and complementing both business lines given that the vessels provide security of supply to the Group’s animal feed customers. 

USE OF PROCEEDS: 

The proceeds from the issue of the Bonds, which net of bond issue expenses are expected to amount to approximately €8,200,000, will be on-lent by the Issuer to AST Green Shipping Ltd. pursuant to a loan agreement to be entered into between the Issuer and AST Green Shipping Ltd. for the purpose, and will be utilised for the following purposes, in the following amounts and order of priority:  

1. an amount of circa €1,600,000 of the Bond issue net proceeds will be used by the Issuer to part finance the redemption of the outstanding amount of 2018 AST Prospects MTF Bonds remaining in issue as at or about 16 June 2023 (including payment of interest thereon and of the Redemption Premium) being the expected date of redemption of the 2018 AST Prospects MTF Bonds as determined by the Issuer and duly notified to Existing AST Bondholders (as defined in the Prospectus). The balance of the outstanding amount of 2018 AST Prospects MTF Bonds (including payment of interest thereon and of the Redemption Premium), in an amount of €300,000, will be paid out of the sinking fund constituted in terms of the 2017 AST Company Admission Document; 

2. an amount of circa €6,500,000 of the Bond issue net proceeds will be used for the purpose of financing the purchase of the New Vessel/s (as defined in the Prospectus) and any costs related to any upgrades related to the Vessels as may be necessary; and 

3. the remaining balance of the Bond issue net proceeds in an amount of circa €100,000 will be used for the general corporate funding purposes of the Group. 

How to Apply: 

Online

Should you wish to apply online you can do so easily via our Moneybase Invest platform which is available as an app on both Android and IOS stores and also on the web https://live.moneybase.com. Simply log in and search for 6.25% AST Group plc Secured 2033 – Exchange to exchange your existing bonds for New Bonds. You can also apply for additional bonds using the instrument 6.25% AST Group plc Secured 2033 – Additional.

New subscribers can apply by the using instrument 6.25% AST Group plc Secured 2033 – New Applicant.

Advisory
Financial Advisory clients who wish to seek financial advice or who prefer to speak to their financial advisor can visit one of our four branches (Birkirkara, Mosta, Sliema and Fgura) or contact us at +356 25 688 688 or via live chat on www.cc.com.mt

The minimum application amount is €1,000 and in multiples of €100 thereafter.

Non-nominee applications will be subject to a €25 fee.

The value of the investment can go down as well as up and past performance is not necessarily indicative of future performance. Investing in the bonds of the Issuer may result in a loss of some or all of the capital invested. Prospective investors wishing to subscribe to the bonds should make their own assessment as to the suitability of the investment after reading the Prospectus to fully understand the features of the investment and the potential risks and rewards associated with the bonds. Prospective investors are to consult their independent financial advisor as to the suitability or appropriateness of investing in the bonds. Prospective investors are advised that where an appropriateness assessment is not required investors do not benefit from the corresponding protection afforded under the Conduct of Business Rules.

This advert was approved for issue by Calamatta Cuschieri Investment Services Limited, which is licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap 370. CCIS, Ewropa Business Centre, Triq Dun Karm, Birkirkara BKR 9034, Malta.