Dolmen Properties plc to redeem 50% of its 6% €10.9 million bonds on 20 November 2010

The company explained that it was taking this decision after its most recent half-yearly accounts published on 31 August 2010 showed “a healthy position with enough cash accumulated from ongoing profits during the years to meet its sinking fund obligations”.

Dolmen Properties had issued a total of €10,949,470 in October 2003 to “finance the upgrading and expansion of the hotel and to refinance the long-term bank loan and other loans taken out primarily to fund capital projects at the Dolmen Hotel”.

The company explained that bond holders appearing on the register at 5 November 2010 – up to and including trading activity on 2 November 2010 – would be receiving “50% of their principal amount together with the yearly interest payable on 20 November 2010”.

Trading in the Dolmen Properties plc bonds would be suspended between 3 and 5 November 2010, both days inclusive, and would recommence on Monday 8 November.

Dolmen Properties plc would be redeeming these bonds at a redemption value of €233.00 per bond.

Dolmen Properties plc Chairman George Fenech said: “This redemption is a first for the market and confirms the strength of the company.

“This year’s performance is also underpinned by the general recovery witnessed in the tourism industry. The hotel’s location and its strong operational base go to support the company’s financial performance,” he concluded.