corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
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Post by corto on Oct 9, 2020 11:37:12 GMT
Convertible bonds at 20% discount; 12 days to
Correction (see next message): It's convertible shares, not bonds .
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dead-money
Rocket to the Moon
Posts: 747
Likes: 656
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Post by dead-money on Oct 9, 2020 17:02:42 GMT
Convertible bonds at 20% discount; 12 days to go Sadly not part of Future fund and not paying any annual interest, so convertible shares, rather than bonds and thus not that attractive.
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Post by GentlemansFamilyFinances on Nov 25, 2020 22:01:55 GMT
Whilst I didn't invest, they smashed their target and have a lot of money for future growth.
I see also that C****c R********s are raising a lot of money right now - millions actually which is great for them I guess and for debenture holders (who presumably are ahead in the queue if whisky goes sour).
The debentures jumped from between 5-10% premium to now 25-30% premium which still puts them at a 10-20% discount based on accrued interest. Bargain?
Plus O*****l are supposedly raising money soon on a well known crowd funding platform.
There's a lot of money flowing into these projects which is a good sign.
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Post by nbk on Nov 26, 2020 20:26:21 GMT
I would be careful about investing in C****c R********s on the secondary market at the current premium levels.I have had discussions with C****c R********s as part of me looking at their equity fundraising on Crowdcube. They are planning on refinancing the Abundance debentures when their first plant is operational ( so perhaps mid next year) rather than waiting until July 2022 when the current debenture term ends. Paying a premium of 28-30% would probably just break even if they refinanced In say Jan - so you need to do your sums with regards to discounts and interest accrued.
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Post by GentlemansFamilyFinances on Nov 26, 2020 20:35:01 GMT
I thought that the rolled up interest is about 45p in the pound at the moment so buying at say 30% gives an uplift of 15p in the pound?
The interest rate drops in the future too so an early repayment would be ideal for debenture holders would it not unless you want to hold on for the long term?
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Post by GentlemansFamilyFinances on Nov 26, 2020 20:44:28 GMT
I did some quick sums and the current rolled up interest is about 47% and the current interest rate is 9%.
Early repayment doesn't bother me, I've not had much invested but after the hiatus I feel that return of capital is more important than return on capital.
That's why I didn't invest in either crowdfunding pitch. The prospect of EIS is nice but I don't want to be holding shares long term with little prospect of selling easily
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