“The TMR II bonds follow the first issue of the TMR I bonds of EUR 70 million from the end of last year. We want to use both tranches primarily to raise funds in the amount of EUR 180 million in order to pay the Company shareholders the difference from the share capital decrease”, Bohuš Hlavatý, Chairman of the TMR Board of Directors, commented on the purpose of the issue. The shareholders decided on the share capital decrease from EUR 221.34 million to EUR 46.95 million at the Extraordinary General Meeting in August of last year.
The TMR II bonds bear the subordinated status, which inter alia means that in case of the Company going into liquidation, the Bonds’ liabilities would be settled after repaying all other creditors. “We think that despite the subordination, this security with an interesting yield may be the right investment opportunity for more conservative investors who want to capitalize on TMR’s success”, Bohuš Hlavatý added.
The prospectus for the TMR II bonds was approved by the Slovak National Bank on 27 January 2013. The primary bond offering (subscription) will last from 5 February 2014 till 5 August 2014. After the issuance an application will be filed for the TMR II bonds to be admitted to trading on the regulated free market of the Bratislava Securities Stock Exchange. The arranger of the issue is J&T IB and Capital Markets; the lead manager and administrator is J&T Banka. Allen & Overy provided legal consulting.
Tatry mountain resorts, a.s. is the top player operator in tourism in Central and Eastern Europe, which itself or via subsidiaries owns and operates attractive mountain resorts and hotels in the area of the Low and High Tatras. The assets in the Low Tatras include the resort Jasná Nízke Tatry and the following hotels: Wellness hotel Grand Jasná, Tri Studničky Hotel and Chalets Záhradky De Luxe. In the High Tatras, TMR owns and operates resorts Tatranská Lomnica, Starý Smokovec and the following hotels: Grandhotel Praha Tatranská Lomnica and Grandhotel Starý Smokovec, and hotel FIS Štrbské Pleso. TMR also co‐operates the ski area Štrbské Pleso and since the winter season 2012/2013 it has been leasing the mountain resort Špindlerův Mlýn in the Czech Republic in cooperation with SMMR, a.s. TMR owns Tatralandia, the largest Slovak aquapark with all-year operation, which offers a lot of water activities, the Fun Park, or relaxation in a special tropical hall with sea water. It also offers accommodation in bungalows and suites of the Holiday Village Tatralandia. TMR owns and leases out Hotel Liptov and Hotel Ski&Fun Záhradky and Bungalows, Kosodrevina Lodge, and Hotel Slovakia. Almost 190 million Euros have been invested by the end of 2013 in the above-mentioned resorts. These investments help to increase the standard and visit rate in the Tatras. Since 2012 the TMR shares have been traded on three European stock exchanges – in Bratislava, Prague and Warsaw.