Wellesley calls its first ISA bond in early, at par

2boi

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Wellesley calls its first ISA bond in early, at par Feb 3, 2018 0:44:34 GMT

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Post by 2boi on Feb 3, 2018 0:44:34 GMT

Got the email below today. On the face of it seems fair enough, they are calling my Wellesley ISA bonds a year early at par, offering to swap them for similar bonds paying same rate (5.25%) but ending a year later. Quite good in fact. Also seems like an administrative reason behind it rather than anything to worry about. However it is annoying, to be honest I had not noticed or had forgotten there was a call option

. So I am wondering what else may be tucked away in the new prospectus (www.share.com/siteassets/media/global/wellesley/WSF-Final-Terms-Bond-A5-25-due-2020.pdf "

Anyone else got this and looked into it?

"Dear Sir/Madam,

This email is important as it affects your current Wellesley Finance Plc bondholding.

We are contacting you today to inform you of a Corporate Action in relation to your holding of Wellesley Finance Plc (“WF”) bonds.

WF is exercising its call option giving bondholders at least 30 days’ notice before redeeming all outstanding bonds on 05 March 2018.

Bondholders are being given the following options:

1. Do nothing and receive 100% of your capital plus accrued interest paid into your Self Select ISA - Wellesley here at The Share Centre, or;

2. Elect to reinvest your capital redemption proceeds into a new WSF bond at 5.25% pa gross and receive only your accrued interest into your Self Select ISA - Wellesley.

Please see the attached PDF letter which details the terms of the offer and options available to you.

Please note that instructions to reinvest your capital redemption proceeds into new Wellesley Secured Finance Plc (“WSF”) bonds, will need to be with us no later than 14:00 on 23 February 2018. We would advise you to send your instruction to us by email to Wellesley@share.co.uk.

We will be unable to process any reinvestment instruction unless you have updated your details to become compliant with the recent MiFID II legislation. If you require assistance please visit our website at: www.share.com/mifid2.

Kind regards

The Share Centre

This E-mail is intended only for the use of the addressee and may contain confidential or legally privileged information.

If you are not the intended recipient, you are requested not to disclose or make use of this information in any way. The Share Centre does not accept any liability for the consequences of any computer viruses which may have become attached to and been transmitted with this E-mail. The Share Centre will not be liable for any consequential direct or indirect losses as a result of non receipt or interception of this communication. If you have received this E-mail in error, please contact the sender immediately by telephoning 01296 414141 or advise us by return E-mail.

The Share Centre Limited is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority, and is entered in the register under registration number 146768.

Registered in England No. 2461949. Registered office: Oxford House, Oxford Road, Aylesbury, Buckinghamshire, HP21 8SZ.

Email: info@share.co.uk. VAT registration no. 596 3918 82.
"

Last Edit: Feb 3, 2018 0:45:14 GMT by 2boi

2boi

Posts: 69

Likes: 43

Wellesley calls its first ISA bond in early, at par Feb 3, 2018 1:24:12 GMT

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Post by 2boi on Feb 3, 2018 1:24:12 GMT

my mistake there is no extra year, new maturity date is 21/3/2020 instead of 19/3/2020

So far have spotted:

Management's fees go up by 20% to 0.3%.
Loan to Value max is 90% same as before but pretty high!
New risk section is 4 pages now instead of 1/2 page before!
Whole terms are now 26 pages instead of 19 before
New clause C.8:

Limited Recourse: All payments to be made by the Issuer in respect of the Notes of a

particular Series will be made only from and to the extent of the sums received or

recovered from time to time by or on behalf of the Issuer and which are attributable to the

relevant Series. To the extent that the sums received or recovered are less than the

amount which the Noteholders may have expected to receive (the difference being

referred to as the shortfall), such shortfall will be borne by the Noteholders. Non-payment

of any such shortfall shall not constitute an Event of Default under the Conditions of the

Notes. None of the Share Trustee, the Agents, the Placing Agent, the Loan Originator and

the Loan Servicer has any obligation to any Noteholder for payment of any amount by the

Issuer in respect of the Notes.

Last Edit: Feb 3, 2018 1:25:42 GMT by 2boi

2boi

Posts: 69

Likes: 43

Wellesley calls its first ISA bond in early, at par Feb 6, 2018 23:05:07 GMT zlb likes this

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Post by 2boi on Feb 6, 2018 23:05:07 GMT

Looks like no one else has this problem then...

I've given up going through the differences between the old terms and the news ones and decided to cash in for the following reasons
1) Wellesley have not explained why they are doing this
2) Wellesley have not expalined what difference it makes (unless I wade through over 200 pages of legal documents)
3) there have been some worrying FT articles about Wellesley recently (Google for "alphaville" "ft" "Is all well at Wellesley?" or "The joy of borrowing from your own P2P business… so you can buy more shares in that business"
4) the stock market has finally crashed so it's a good time to have ready cash available
5) next crash will be property and 90% LTV property backed bonds even more so

Last Edit: Feb 6, 2018 23:05:55 GMT by 2boi