GlobalCapital restructuring plans – IPO and new bond issue

Through its announcement dated 7 September, GlobalCapital plc informed the market that as part of Board approved restructuring plans, the company was considering a plan for disposal of at least 25% and up to 45% of the company’s shares in GlobalCapital Life Insurance Limited through (i) the listing of the shares of GCLI and (ii) an offer to the company’s shareholders to exchange all of their shares in the company for shares in GCLI (in accordance with an exchange ratio yet to be determined).

The board of directors expressed satisfaction that the shareholders have approved the resolution proposing the Class 2 transaction at the AGM of 9 October.

Through its announcement dated 8 October, the company also informed the market of its intention to file an application with the Listing Authority requesting admissibility to listing of €10,000,000 Unsecured Bonds, under terms and conditions to be announced at a later date and this as subject to Listing Authority approval.

In view of its intention to issue a new bond, the company aims to use the net proceeds from the new bond to redeem the €10,000,000 5% GlobalCapital plc Unsecured Bonds 2021. While the net proceeds of the IPO will be used to finance any additional liquidity that may be required by the company, whether to redeem the outstanding bond or the new bond, such proceeds are presently envisaged to be used to redeem the new bond, which is intended to be issued prior to the IPO, subject to Listing Authority approval as aforesaid.

The IPO will also improve the company’s and the Group’s capital position and structure.

Appointment of chairman and senior independent director

Following the AGM, the board of directors convened and re-confirmed Prof. Catalfamo as the chairman of the company. The board of directors re-confirmed Mr Schembri as the senior independent director of the company.