Retail Charity Bonds | Greensleeves Homes Trust | Roadshow Announcement

http://www.retailcharitybonds.co.uk/article/greensleeves-homes-trust-roadshow-announcement/

“Retail Charity Bonds plc (RCB) today announces a roadshow on behalf of Greensleeves Homes Trust (GHT) to meet with fixed income investors.

RCB is an issuing platform enabling UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors and listed on London Stock Exchange.

A sterling bond may follow, subject to market conditions”

What would be the likely coupon - I have some of the existing 5% CAF ( CAF1 ) which is trading on a GRY of 3.43%pa
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Comments

  • I have no idea but with inflation edging towards 3% (last RPI 2.8%) it would have to be a bit above the last bond offering to lure people away from equity.
  • I would consider it, depending on a sensible coupon and some further investigation. All of my charity bonds have been stress free.
  • Places For People 2023 ( coupon 4.25 pct. ) issued late last year would be an indication i guess and that traded around 104.00 soon after issue but now 102.50 or so. But with inflation creep and last charity offering maybe coupon would have to be 5.25-5.75 range to attract interest. ?
    Thanks Paddy for the link to the accounts.
  • It looks like a small charity to me, so the issue size would be small, financials look ok, but I’m not an accountant, I might hazard a guess at 4.25-4.50% Coupon

  • Yes - I'd be surprised if it was outside the range 4.5% +/- 0.25%

  • Unless of course maturity is beyond 7 years
  • Hopefully it will be a 7 year bond, and not any longer!
  • Paddy, thanks for the accounts
    As you say a smallish charity within the care sector (but with medium no of employees)
    Hopefully there be good security on the residential property.
    Page 25 (note 10) Loans is worth looking at
    Page 26 (Note 11) Operating leases, hopefully more information will be available on the nature of these leases in the prospectus

    Surprised that there are only 5 HQ staff, out of 623 FTE
    One would have thought there be more central support staff, eg HR, payroll, building support etc.

    Agency staffing costs increased from £1.1m to £1.6m, which could mean they are having trouble in recruiting care staff

    Otherwise the accounts look very professionally produced.
    Look forward to reviewing their prospectus

    Further diversification of my portfolio would be beneficial
  • Thanks for the comments. I'll keep an eye out for any more news updates.

  • Interest Rate:4.25% per annum up to but excluding the
    Expected Maturity Date.

    Adjusted Interest Rate:5.25% per annum from and including
    the Expected Maturity Date up to but excluding the Legal
    Maturity Date, an increase of 1.00 per cent. per annum.

    Interest Payments:
    Interest will be paid in two instalments
    on 30 March and 30 September in each year, starting on
    30 September 2017 up to but excluding the Expected
    Maturity Date (30 March 2026), or up to but excluding the
    Legal Maturity Date (30 March 2028) if the Bonds are deferred
    until the Legal Maturity Date.

    Your actual return will depend on the price at which you
    purchase the Bonds and, if you do not hold the Bonds until
    maturity, the price at which you sell your Bonds.

    Date on which the Bonds are issued and on which interest
    begins to accrue
    :
    30 March 2017

    Term of the Bonds:
    9 years, subject to an election to defer
    the maturity of the Bonds until the Legal Maturity Date.

    Expected Maturity Date
    (i.e. when the Bonds are expected
    to mature and are repayable): 30 March 2026

    Offer Period:
    The Bonds are available for purchase through
    your stockbroker or other financial intermediary in the
    period from 7 March 2017 until noon (London time) on
    24 March 2017 or such earlier time and date as agreed by the
    Issuer and the Lead Manager and announced via a Regulatory
    Information Service (which is expected to be the Regulatory
    News Service operated by the London Stock Exchange) (the
    "End of Offer Date")
  • From the Information Booklet:

    Interest Payments: Interest will be paid in two instalments
    on 30 March and 30 September in each year, starting on
    30 September 2017 up to but excluding the Expected
    Maturity Date (30 March 2026), or up to but excluding the
    Legal Maturity Date (30 March 2028) if the Bonds are deferred
    until the Legal Maturity Date.

    Does that really mean that there will be no interest paid for the last six months of the bond term?
  • No - this phrase is used by a lot of FI issuers - and a lot of investors query it as it sounds ambiguous !

    Means you don't get interest for the day of maturity
  • Available through Barclays now. I reckon its good, CAF 2026 is about 3.5%, A2D 2026 3.3%, assets valued very low on balance sheet
  • Bond of The Week
    Thank's Oliver, I put an order in.
  • Looks like another good option to place funds to help with "portfolio diversification"
    Hopefully this well run charity will continue to be successful, no doubt this bond will enable it to grow further into a market that is likely to expand over the next few years. Oliver's write-up provides a positive situation.
  • Many thanks Oliver for a write-up of the usual excellent quality.

    I have put an order in for these - it will be interesting to see how soon the offer closes.

    I echo Shaun's comments about diversification.

    My only disappointment was that the intial term was 9 rather than 7 years
  • Thanks all for the comments above. With inflation creeping ever upwards and maybe 2.8% by end of this year and given the length of this bond to maturity i was hoping for a coupon minimum of 5% but anyway not surprised at 4.25% given recent issues and other charity bonds.
    Wozzitworthit and Shaunm have commented on Olivers comments but i can't find that here-can you please give me guidance where to find the write-up.? Many thanks.
  • I have a question which maybe someone can answer. Offer is open until 24 March, but might close early etc, if it does close early then when do the bonds list and when are they settled? I might be wrong but some issues have listed a couple of days after an early close, others have not. Thanks in advance for any clarification. I would ask the broker but do not have that much confidence in their answer!
  • Whoops-ref my question above timed at 11.15 i have now found Olivers comments under the analyses and comments section. ! Still be interested to hear others comments/views on a slightly disappointing coupon.
  • The lack of new retail bonds is doubly disappointing as I so enjoy Oliver's beautifully written analysis of them !
  • a lot of demand for it , size bigger than expected:
    Greensleeves Homes Trust: Issue Size Announcement
    March 14, 2017

    The information contained herein may only be released, published or distributed in the United Kingdom, the Isle of Man, Jersey and the Bailiwick of Guernsey in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The bonds referred to below may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958 and the Financial Services (Jersey) Law 1998, as amended.

    14 March 2017

    Retail Charity Bonds PLC

    Greensleeves Homes Trust 4.25% Bonds due 2026 (the “Bonds”)

    This announcement constitutes the Issue Size Announcement as referred to in the Prospectus dated 7 March 2017 (the “Prospectus“) and must be read in conjunction with the Prospectus.

    Defined terms used herein shall have the meanings attributed to them in the Prospectus.

    The Offer Period relating to the Bonds closed at 10:30am (London time) on 14 March 2017 and, accordingly, Bonds can no longer be subscribed for pursuant to the offer. In accordance with Article 8(1) of Directive 2003/71/EC (as amended), the Issuer is pleased to confirm the following in connection with the offer of the Bonds:

    Issue Date: 30 March 2017
    Total principal amount of the Bonds issued (including Retained Bonds): £50,000,000
    Total principal amount of Retained Bonds £17,000,000
    Estimated net proceeds of the offer: £32,630,000
    Estimated expenses relating to the offer: £370,000
    For enquiries please contact:

    Greensleeves Care
    Anna Kleinman Tel: +44 (0)20 7793 3150
    Bell Pottinger
    Victoria Geoghegan
    Elizabeth Snow


    Tel: +44 (0)20 3772 2562
  • crikey that was quick - closed in 4 days. Glad I got my order in yesterday
  • WI trading 1.01/1.02
  • Ticker Code GSHT
    Latest trans, very good!
    09:19:15 101.90 49,000 49,931.00 OK
    08:09:01 101.00 25,000 25,250.00 AT
    08:09:01 101.00 25,000 25,250.00 AT
    08:05:52 100.75 25,000 25,187.50 AT
    08:05:45 100.75 25,000 25,187.50 OK
  • Amazed it sold out so quick ! I couldn't get excited over 4.25% over 9 years. Feel there's far better value out there; but good luck to all.
  • Colin i agree with you, if it was for 6-7 years then maybe but still think closer to 5% would have been the ticket to ride. It does look a good organisation but so do others that pay higher. Even stagging it wouldn't have looked that exciting either though early days.
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