The Exchange attracted more than 3 out of 4 institutional and retail shareholders (3,360 holders out of 4,000 initial)
Natixis acted as Advisor and Sole Lead Manager, with Bankinter as Agent Bank, and more than 30 Spanish and international financial institutions took part in the operation either directly or on behalf of their clients.
Meliá Hotels International reported to the Spanish Stock Exchange Commission today the results of its Offer of Exchange of Ordinary Bonds for the A Series Preference Shares issued in April 2002 by Sol Meliá Finance Ltd. and guaranteed by the Company, after completion on Friday October 26 of the period of acceptance of the Offer.
According to the report, during the Offer period, holders of a total of 816,940 Preference Shares have accepted the Offer, representing 76.431 %of the Preference Shares targeted by the offer.
Consequently, 816,940 Ordinary Bonds with a nominal unit value of €93.50 have been issued, meaning that the total value of the Ordinary Bond Issue is €76,383,890. As of today the Company has proceeded to subscribe and pay out the Ordinary Bonds, with Meliá Hotels International, SA acquiring the Preference Shares.
The success of the Exchange, the first in Spain for a traded company with international exposure and relevance, shows market recognition for the financial approach that underpinned the Offer, designed to satisfy both Investors and the Issuer. The Company points out that this operation has allowed those that have accepted to exchange their perpetual preference shares in Sol Meliá Ltd. at a total price of 94.504% (including the accrued dividend from the last quarterly payment), implying a considerable premium on the share price before the announcement of the swap, and they will receive in return a Senior Bond in Meliá Hotels International with an attractive quarterly return of 7.8% (APR 8%) with a certain maturity at 3 years and 9 months, and high credit enforceability.
From the Meliá perspective, the operation will lower the financial costs associated with Preference Shares and adjust them to a more appropriate cost, thus creating shareholder value, improving ratios and ensuring compliance with covenants.
As explained by Gabriel Escarrer, Vice Chairman and CEO of Meliá Hotels International, “in a complex market environment, we have the dual responsibility of offering Preference Share holders an alternative satisfactory compensation, investor-friendly and with reduced risk, all without affecting our credit commitments nor harming our future solvency. The solution proposed was excellent and investors have also understood this. “
The operation allows Meliá to continue to face its major maturities as planned, while also making progress in smoothing out the amortization schedule for the Company.
About Meliá Hotels International
Meliá Hotels International was founded in 1956 in Palma de Mallorca (Spain) and is one of the world’s largest resort hotel chains, as well as Spain’s leading hotel chain. It currently provides more than 350 hotels and 87,000 rooms in 35 countries on 4 continents under its brands: Gran Meliá, Meliá, ME, Innside, Tryp by Wyndham, Sol and Paradisus. Its product and service portfolio is complemented by Club Meliá, the only vacation club operated by a Spanish company.
