Sol Meliá Finance has closed the issue of its preferred shares with a total subscriptrion of 107 million Euros. The preferred shares will pay out a fixed annual dividend of8% over the first the years, payable at the end of each quarter. The first dividend will be paid on the 30th June 2002.
The preferred shares may be negotiated and sold in the Spanish securities market (AIAF). From the tenth year onwards, the issuer will have the right to amortize the issue. If this is not effected, from that date onwards, the dividend will be variable, equivalent to Euribor at three months, plus a differential of 5%, with a guaranteed minimum of 12,88% annually.
This issue has given the company access to a new source of financing in the Stock Market and will enable Sol Meliá to increase its capital by 107 million Euros, thereby strengthening its financial structure, achieving a total of 1.256, 3 million Euros.
Sol Meliá is the leading hotel company in Spain, Latin America and the Caribbean, the third largest hotel company in Europe and number ten in the world ranking. The company provides more than 350 hotels in 30 countries under its Meliá Hotels, TRYP Hotels, Sol Hotels and Paradisus Resorts brands.