Best Deal Properties cuts debt by cancelling €60,800 in bonds

Best Deal Properties Holding has reduced the outstanding nominal value of its 4.75% secured bond issue to €5,309,200 following the cancellation of €60,800 in repurchased bonds.

The Malta Stock Exchange confirmed the cancellation in Exchange Notice 2558, issued on 2 November. The figure represents the remaining balance of that particular bond issue, rather than the company’s total debt.

The securities were purchased during October. Under the terms of the November 2022 prospectus, repurchased bonds must be cancelled and cannot be reissued or resold.

A larger repayment is also approaching. In a separate announcement on 27 October, Best Deal said it would exercise an early-redemption option covering 70% of the outstanding bonds, proportionately across bondholders, on 30 November.

Those investors are due to receive the principal being redeemed together with accrued interest. The scheduled redemption is separate from the market repurchases already completed.

Other listed companies have been using cash to acquire their own shares, with different intentions for the securities purchased.

APS Bank acquired another 36,652 shares between 2 and 6 November, bringing purchases under its programme to 433,579 shares. The bank said these would not be cancelled.

Plaza Centres took a different approach. On 6 November, it announced that its board had resolved to cancel the 416,510 shares repurchased during the first three months of its programme.

Bank of Valletta, meanwhile, purchased 2,005 shares during the week ending 6 November. Its second programme had accumulated 4,466 shares by that date, with the shares retained rather than cancelled.

The disclosures illustrate distinct capital-management decisions. Bond cancellation removes principal from the relevant debt issue, while share repurchases concern the company’s own equity securities. The financial consequences depend on the purchase price, funding and subsequent treatment of those securities.