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Post by ablrate on Sept 5, 2016 19:43:33 GMT
Hi all
I will respond to this in the morning after speaking with the borrowers. We were aware that this may be coming up and have made sure that our position is secured, but I have asked for comment from the business also and will add this into the admin section as well as posting, if appropriate, here.
Regards Ablrte
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Post by ablrate on Sept 5, 2016 20:11:50 GMT
We received a response on this one so am I am happy to update:
Our loan is secured on the individual trading company and the charge is registered and we do have a guarantee from the holding company.
The deal was listed at 14% because we negotiated that figure and knew that anything less would not have worked for our lenders with everything taken into consideration. The business is more than capable of funding the repayments at 14%.
The business are not planning on redeeming the Ablrate loan early, it is an amortizing loan so they will just see it through to term.
Whilst we have not seen the CS deal we are aware from BN that they have performed their own due diligence in compliance with their model. We understand they are aiming to raise a large amount of money for BN which can only be good for the business and therefore our security. The money raised will be used to open 3 new large venues that will make the group more profitable and cash generative so will ultimately benefit the ablrate investors.
Regards Ablrate
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stevio
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Post by stevio on Sept 5, 2016 21:25:16 GMT
We received a response on this one so am I am happy to update: Our loan is secured on the individual trading company and the charge is registered and we do have a guarantee from the holding company. The deal was listed at 14% because we negotiated that figure and knew that anything less would not have worked for our lenders with everything taken into consideration. The business is more than capable of funding the repayments at 14%. The business are not planning on redeeming the Ablrate loan early, it is an amortizing loan so they will just see it through to term. Whilst we have not seen the CS deal we are aware from BN that they have performed their own due diligence in compliance with their model. We understand they are aiming to raise a large amount of money for BN which can only be good for the business and therefore our security. The money raised will be used to open 3 new large venues that will make the group more profitable and cash generative so will ultimately benefit the ablrate investors. Regards Ablrate Thanks AB However, what concerned me was that the CS loan appears secured on the same assets and mentions a priority (you can see the details without needing to log in on their website). I'm not sure it's possible for their loan to be higher priority is it? They should also mention AB's loan if AB's is higher priority shouldn't they?
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Post by ablrate on Sept 8, 2016 15:33:39 GMT
Hi
Response:
On this one, the CS loan is secured by a debenture on the Top Co. Ablrate have a registered debenture on the operating company. So basically if TopCo were to fail CS lenders would hold the shares of the operating business but Ablrate security would still be in place against all assets. The positives in this is that Ablrate's is amortising so security improves (all things being equal) and the injection of funds from CS only strengthens the group and therefore ABL lenders.
Regards Ablrate
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blender
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Post by blender on Sept 8, 2016 16:31:37 GMT
Yes, on balance I think I will stay in the 14% loan.
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jimbob
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Post by jimbob on Sept 9, 2016 9:03:28 GMT
Yes, on balance I think I will stay in the 14% loan. There is £3k available at par, rounded my holding up to a stout 3 figures from the available pool
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kaya
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Post by kaya on Sept 9, 2016 9:06:23 GMT
This was my favourite borrower at Rebs, returning 17% without a hitch, so 14% here does not feel overly high.
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