Launch of Mizzi Organisation Finance plc €25 million 6.2 per cent Bonds 2016–2019
Mizzi Organisation Finance plc has launched a public bond offering of €25 million 2016 – 2019 of a nominal value of €100, issued at par and bearing an interest of 6.2% per annum, payable on 31 May and 30 November each year. In the event of over-subscription, the company may issue additional bonds not exceeding €5 million. The Bonds are due for redemption on 30 November 2019 unless otherwise previously redeemed or cancelled on any day between 30 November 2016 and 30 November 2019 This was announced by, John C. Grech, Chairman of Mizzi Organisation Finance plc, during the launch of the Mizzi Organisation bond.
Speaking about the Organisation, John C. Grech explained that the company is one of the longest established business organisations on the Island, owing its origins to Spiru Mizzi, its founder, who started the business in 1919.
90 years on, the Organisation is still very prominent on the local business scene, and its strength lies in its diverse portfolio of business activities. In fact, the slogan used in connection with the bond issue is “our strength is our diversity”.
Grech added that “Mizzi Organization is a market leader in various sectors, namely, automotive, beverage manufacturing, distribution and importation, retail, tourism, real estate and mechanical and electrical contracting. Together with other partners it is also involved in gaming, insurance and educational tourism.
The Organisation’s success results from its strategy of having the right mix of entrepreneurship through the “hands on” involvement of the members of the Mizzi family assisted by professional management both at company level and head office and over 900 employees.
John C.Grech stressed that “since the 2002 bond issue, the Organisation has undergone a period of unprecedented capital investment of over €75 million. These include rebuilding the Continental Cars showrooms and garages with a total investment of €6.2 million, on site development to the extent of €5.3 million at Muscat Motors, building and equipping the state of the art General Soft Drinks bottling and warehousing facility in Marsa with a capital investment of €27 million, building the annex in Arkadia, Gozo and opening additional fashion retail outlets in Gozo, Malta and Slovakia.
Further information on the bond issue may be obtained from the prospectus dated 29th October 2009, copies of which, together with application forms are available from 6th November 2009 from banks, stockbrokers and authorized financial intermediaries. The prospectus is also available electronically from www.mizziorganisation.com and www.rizzofarrugia.com. Subscriptions open on Monday 23 November but 2002 bondholders and Mizzi Applicants must submit their Applications forms to any of the authorized financial intermediaries by 19 November.
Bank of Valletta p.l.c. is acting as Manager and Registrar while Rizzo Farrugia & Co. Stockbrokers Ltd. are Sponsors to the Mizzi Organisation bond issue. The auditors and reporting accountants are PricewaterhouseCoopers and Camilleri Preziosi are the legal counsel.
The Mizzi Organisation Finance plc bonds are jointly and severally guaranteed by each of the four guarantors, namely: Kastell Ltd, Mizzi Holdings Ltd, Consolidated Holdings Ltd and The General Soft Drinks Company Ltd. Although the three Mizzi family companies, who own each of the four guarantors, also have a shareholding in Banif Bank (Malta) plc, any gain or loss arising from this investment will not impact the financials of any of the guarantors and therefore the performance of this investment will not affect bondholders of Mizzi Organisation Finance plc.