ISINMT0002191204MT0002191212
InstrumentSecured BondsSecured Bonds
ListingOfficial ListOfficial List
Issue Date04/04/201904/04/2019
Amount€11,500,000€11,000,000
Maturity27/03/202727/03/2031
Coupon3.75%4.25%

Issuer Profile

The ultimate beneficial owner of the Mercury Group, Mr. Joseph Portelli has a long trading history in the acquisition, development, management and operation of real estate developments including hotels, residential, office and retail property and entertainment projects and outlets.

The Mercury group was specifically set up to acquire, develop and operate certain aspects of the Mercury site. The Project is designed by internationally renowned architectural firm Zaha Hadid Architects and is one of the final projects signed off by Zaha Hadid herself. The finished complex will include a mix of historical and ultra-modern edifices on its site. At its heart is a 19th century heritage building, also known as Mercury House, which will be flanked by a 31-storey Tower as well as 2 underground storeys with a boutique hotel situated in its podium and in parts of the said Tower, and will also be serviced by an underlying 4-storey car parking facility.

Issuer Need

Mercury group required financing to finance the construction as well as restructure its current bank financing in order to align its debt repayments with its eventual operational cashflows . This simpliifcation of its debt structure moving from bank facilities with periodical capital repayments to a bond issue with a bullet repayment at the end of the bond term would be more conducive to the nature of the group’s operation.

Solution

Calamatta Cuschieri structured a 2 series €22.5 million bond issue split into an 8 year bond and a 12 year bond in order to efficiently reflect the cashflow generation of the project. The bond was fully subscribed  and the Mercury Group was able to utilise bond proceeds  to refince its bank debt and to fully finance the construction of the project.