Alpha Plus Launches 5.00% Secured Sterling Retail Bond Due 2024

Alpha Plus Holdings plc – a provider of private education which owns and operates 18 high quality independent schools, nurseries and sixth form colleges, predominately in London – has today launched an eight year 5.00% retail bond.

• This is the second secured issuance by the Company; the first has traded consistently at a premium to its issue price on the London Stock Exchange’s ORB since its issuance in December 2012
• The bonds are secured against real estate and other assets
• Minimum subscription amount is £2,000 with further purchases in increments of £100
• The first interest payment shall be made on 30 September 2016 in the amount of £2.50. Thereafter, interest shall be paid semi-annually, on 31 March and 30 September, in arrears in equal instalments of £2.50 per £100 of investment
• The offer period is expected to close on 23 March 2016
• Authorised Distributors are Interactive Investor, Redmayne Bentley LLP, Barclays Stockbrokers


The Alpha Plus Retail Bond prospectus and information booklet can be found at http://www.alphaplusgroup-retailbond.co.uk/

Comments

  • 5%, No ta, I like fishing in more shark infested waters
  • Given the trading history of the previous issue, it would not be unreasonable to assume that it would trade at a yield to maturity of around 4 to 4.5%, that would mean that it would be priced around 103 to 107 shortly after trading. That's enough of an incentive to take a look. The different term and smaller coupon might might make it less popular at issue and that might affect the whole dynamic, however.
  • Good info Finn2 thanks.
  • Could be tempted to apply for a few. In dropping interest rate environment cant really expect much more than 5%. Hope we get a bond of the week analysis in the meantime
  • Does anybody know if these bonds will be allocated on a 'when it's gone it's gone' basis or a 'scale back' basis?
  • No idea, but all the bonds i have ever applied for have been first come, though i think the rugby club was scaled back. I am reviewing over the weekend and will put my order in - with my broker I can always cancel if they declare an early close providing its before the deadline - that way I know I have an option
  • See Oliver has done a bond of the week (many thanks). Decided to get my order in over the weekend so good to see this giving positive support now.
  • Hargreaves are offering this. Just placed an order.
  • Many thanks again Oliver.

    Had already ordered as I think these may well go quickly seeing as how this is first ORB issue for yonks and the low interest rate environment forecasts are still getting extended.

    Quite happy to hold for 8 years even if rates creep up as incremental interest gain in short term will help balance out any increase in longer term, plus it's nice to get away from financial related Fixed Interest investments.

    I'm not going overbaord but these will help maintain my "ladder"

    007
  • Morning all,

    iDealing tell me they are not handling this issue (which is a shame - perhaps there is too little demand) and Barclays are much too expensive for a small holding. My alternative is to buy a parcel in the market .

    Can anyone help me by posting when they commence trading in case it passes me by

    Whitey
  • Why not open HL account? They are taking orders for this and are pretty good for bonds - they offer quite a wide range for online trading. For many new launches they don't participate officially but take individual orders upon request at no charge.
  • Youinvest now offer online dealing in retail bonds. I've just placed an order for this issue online.
  • Barclays should allow you to place an order on a new issue at no dealing charge. Although obviously their outrageous £65 dealing charge is problem when it comes to selling ...
  • For bonds Youinvest currently only offer new issue purchases online, everything else is via telephone I believe.
  • Just had an email saying that they have issued an amendment to the prospectus. They claim good demand and want to raise more than the £130m limit quoted and have added more security - raising it from £109 to £147m (I hadnt noticed that the original security didnt cover the original £130m). Still reading but I cant see a new upper limit on what they might borrow. I hope they dont try and take more than they can earn a return on - we do want some buyers after the issue. People's thoughts?
  • Hi

    I omitted to mention of course that our bonds portfolio is held in our ISA therefore I receive the interest gross (hurrah) and my ISA is with iDealing because of the low costs. So I will be buying some in the market. I will be looking at LSE/ORB website each day to see when it starts trading

    Barclays new issues part of their website say the offer is now closed

    Whitey

  • That's curious from Barclays given my earlier post. They have told me that I have until 21st to decide if I want to proceed with my order give the the prospectus change and there is nothing on Alphaplus to suggest this is now closed
  • You are quite right -Hl closed too. Assume they went over the limit and took the extra but closed offer which is good
  • Good trading start this morning - ticker code = ALP2
    Mid Price 101.72
    Time/Date Price Volume Trade Value Type
    13:01:25 22-Mar-2016 101.50 4,800 487,200.00 Ordinary Trade - delayed publication
    12:28:00 22-Mar-2016 101.26 10,000 1,012,571.70 Ordinary trade
    12:11:35 22-Mar-2016 101.60 6,000 609,600.00 Ordinary Trade - delayed publication
    11:56:39 22-Mar-2016 101.50 30,000 3,044,895.00 Ordinary Trade - delayed publication
    11:56:28 22-Mar-2016 101.50 46,000 4,669,000.00 Ordinary Trade - delayed publication
    11:55:07 22-Mar-2016 101.50 46,000 4,669,000.00 Ordinary Trade - delayed publication
    08:48:40 22-Mar-2016 103.00 3,000 309,000.00 Ordinary Trade - delayed publication
    08:06:24 22-Mar-2016 102.00 37,000 3,774,000.00 Ordinary Trade - delayed publication
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