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Post by silverporka on Mar 17, 2017 12:42:50 GMT
Charles the LTV seems fine and it seems a good development. How is the loan expected to be refinanced / repaid by the borrower? I couldn't find anything on the site that explained the exit given that the term is quite short...Thanks
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shimself
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Post by shimself on Mar 17, 2017 13:14:10 GMT
These asterisks make life difficult. But anway
The other partner in the senior loan apart from us is called R*****m. They changed name a year ago from H* J* and HJ's history seems to have some blemishes
Charles can you comment?
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 17, 2017 13:23:07 GMT
Charles the LTV seems fine and it seems a good development. How is the loan expected to be refinanced / repaid by the borrower? I couldn't find anything on the site that explained the exit given that the term is quite short...Thanks You mean apart from the deal with the FTSE 250 company to buy the site once 'irrevocable' planning is in place? 
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Steerpike
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Post by Steerpike on Mar 17, 2017 13:29:30 GMT
The Bond Term Sheet indicates a subscription price of £91.53 up to 22-Mar-17 and £91.76 up to 29-Mar-17 and 5 higher prices in April ending at £92.45 on 26-Apr-17. The price as at 17-Mar-17 appears to be £91.76, so are the prices in the Term Sheet incorrect? charles |
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Post by charles on Mar 17, 2017 14:16:47 GMT
The Bond Term Sheet indicates a subscription price of £91.53 up to 22-Mar-17 and £91.76 up to 29-Mar-17 and 5 higher prices in April ending at £92.45 on 26-Apr-17. The price as at 17-Mar-17 appears to be £91.76, so are the prices in the Term Sheet incorrect? charles , the prices/dates listed on the Bond Term Sheet are there to illustrate the prices at which you would subscribe assuming the close happened on those dates respectively. The price, as you say, currently appears to be £91.76 because the first close has been set at 29 Mar 2017, as you'll see from the deal room details. Hope that clears things up?  Regards, Charles
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Post by charles on Mar 17, 2017 15:46:56 GMT
These asterisks make life difficult. But anway The other partner in the senior loan apart from us is called R*****m. They changed name a year ago from H* J* and HJ's history seems to have some blemishes Charles can you comment? , in response to your question, I assure you we have undertaken comprehensive due diligence on the loan origination partner in question, and any doubts you may be alluding to were satisfactorily resolved in the course of our vetting process. We do the same deep-dive DD/checks/legals with all partner firms, and only work with those that we are certain have the right track record, oversight and processes in place. We have turned away many prospective firms that do not meet our partnership criteria.
I would be happy to address any specific concerns/queries you might have if you either PM me on this forum or send an email to [email protected]Regards, Charles
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Post by charles on Mar 17, 2017 15:54:27 GMT
charles - does that mean that we have till 29th March to transfer funds? The Liverpool one, I transferred funds well in advance, but it would be better for me to transfer later (after I get paid). Hi @leopardcat, you don't have to transfer the funds immediately, but I certainly wouldn't advise leaving it to the very last minute! Yes, as long as cleared funds are received before the close, that is fine. But as you're also aware, if demand is very strong, we may bring forward the close (but I'll be sure to inform everyone if that happens). Regards, Charles
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phil
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Post by phil on Mar 19, 2017 10:32:05 GMT
Sorry yes - shouldn't read these things at 1am. Working backwards the VAT facility seems to be £575k So in effect there is a transfer from the junior tranche to equity in the capital structure (i.e. value of equity moves from £1.625m to £2.2m once VAT refunded). Junior tranche shrinks from £1.22m to £0.645m and senior tranche as a % of total loan moves from 68% to 80%, but LTV unaffected. All this of course ignoring the accrued on the VAT facility. That isn't quite how I see it: Looking at the capital structure graph the senior tranche is shown as £2.845m, the junior is £1.625m and equity is £0.995m After the VAT facility is repaid the total facility will be senior tranche as 80% and the junior tranche as 20% This means senior remains at £2.845m and junior reduces from £1.625m to £0.711m The VAT facility seems to be £0.914m Hope that makes sense, all the best, Phil.
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Post by peerlessperil on Mar 20, 2017 0:28:45 GMT
Hi philYour numbers are right & I probably read the junior tranche size as the attachment point whilst trying to get a 3yr old and a 5yr old ready for the school run. However, I have just taken a more leisurely look at the numbers and something doesn't quite stack up. The senior loan split is meant to be 62.5%/37.5%. However, 1,703,874 (amount to be raised) is not 62.5% of the senior loan size as described in the capital chart (where senior loan in total is shown as £2.845m). charles could you explain the difference please? |
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Post by charles on Mar 20, 2017 10:01:18 GMT
Hi phil Your numbers are right & I probably read the junior tranche size as the attachment point whilst trying to get a 3yr old and a 5yr old ready for the school run. However, I have just taken a more leisurely look at the numbers and something doesn't quite stack up. The senior loan split is meant to be 62.5%/37.5%. However, 1,703,874 (amount to be raised) is not 62.5% of the senior loan size as described in the capital chart (where senior loan in total is shown as £2.845m). charles could you explain the difference please? Hi peerlessperil , the difference arises because of interest and fees - one is net, while the other is gross.
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SteveT
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Post by SteveT on Mar 20, 2017 12:56:25 GMT
charles, a couple of questions of clarification: a) This one is filling more slowly than the last (inevitably, given the lower rate). What happens if "Property Crowd participation" doesn't fill the £1.388m figure by the latest close date of 26th April. Will the Principal Lender take up any slack? b) The Bond Term Sheet states the Maturity Date is 15th February 2018, but the Deal Room summary states "The repayment date of the loan to the Borrower is 07 September 2017". Which is correct? c) The Bond Instrument document indicates that, if not repaid at the Maturity Date, default interest continues to be charged at the same 10.2% rate. Is there no further incentive for (or penalty on) the borrower to repay ASAP, if they cannot repay on the scheduled maturity date? What's to stop a 6 (or is it 10.5 ?) month loan becoming a 12 / 18 / 24 month loan ? Thanks
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Post by charles on Mar 20, 2017 16:19:25 GMT
charles , a couple of questions of clarification: a) This one is filling more slowly than the last (inevitably, given the lower rate). What happens if "Property Crowd participation" doesn't fill the £1.388m figure by the latest close date of 26th April. Will the Principal Lender take up any slack? b) The Bond Term Sheet states the Maturity Date is 15th February 2018, but the Deal Room summary states "The repayment date of the loan to the Borrower is 07 September 2017". Which is correct? c) The Bond Instrument document indicates that, if not repaid at the Maturity Date, default interest continues to be charged at the same 10.2% rate. Is there no further incentive for (or penalty on) the borrower to repay ASAP, if they cannot repay on the scheduled maturity date? What's to stop a 6 (or is it 10.5 ?) month loan becoming a 12 / 18 / 24 month loan ? Thanks Hi SteveT , On the first issue, all our deals are underwritten (independent of Property Crowd's balance sheet), so if there is a shortfall from the crowd campaign, the deal will proceed with the underwriters holding the remainder. However, I would note that we haven't had to exercise this option yet (and we don't expect to) because demand has been strong and we always seek to carefully balance deal capacity with investor demand before launching any offers. Furthermore, we have institutional intermediaries wanting to take large allocations of this deal, but as was the case with the first two, we are inclined to prioritise crowd investors first because it is important to us, from both a practical and a philosophical point of view, to have sustainable participation from a diverse crowd rather than a handful of club investors. With regard to your question (b), I would kindly refer you to our FAQs, or if you prefer, to an earlier post of mine when I addressed a similar question from fellow forum member phil --> p2pindependentforum.com/post/173051/threadAs for question (c), I would kindly refer you to the Bond Instrument (there is additional interest) as well as the "Default and Acceleration" section in our deal room for details, but this reaches beyond my area of expertise, so as always, please PM me your contact details and I can arrange for one of the core management team to discuss the technical details of the bond instrument if you wish. Kind regards, Charles
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SteveT
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Post by SteveT on Mar 20, 2017 16:36:42 GMT
charles , a couple of questions of clarification: a) This one is filling more slowly than the last (inevitably, given the lower rate). What happens if "Property Crowd participation" doesn't fill the £1.388m figure by the latest close date of 26th April. Will the Principal Lender take up any slack? b) The Bond Term Sheet states the Maturity Date is 15th February 2018, but the Deal Room summary states "The repayment date of the loan to the Borrower is 07 September 2017". Which is correct? c) The Bond Instrument document indicates that, if not repaid at the Maturity Date, default interest continues to be charged at the same 10.2% rate. Is there no further incentive for (or penalty on) the borrower to repay ASAP, if they cannot repay on the scheduled maturity date? What's to stop a 6 (or is it 10.5 ?) month loan becoming a 12 / 18 / 24 month loan ? Thanks Hi SteveT , On the first issue, all our deals are underwritten (independent of Property Crowd's balance sheet), so if there is a shortfall from the crowd campaign, the deal will proceed with the underwriters holding the remainder. However, I would note that we haven't had to exercise this option yet (and we don't expect to) because demand has been strong and we always seek to carefully balance deal capacity with investor demand before launching any offers. Furthermore, we have institutional intermediaries wanting to take large allocations of this deal, but as was the case with the first two, we are inclined to prioritise crowd investors first because it is important to us, from both a practical and a philosophical point of view, to have sustainable participation from a diverse crowd rather than a handful of club investors. With regard to your question (b), I would kindly refer you to our FAQs, or if you prefer, to an earlier post of mine when I addressed a similar question from fellow forum member phil --> p2pindependentforum.com/post/173051/threadAs for question (c), I would kindly refer you to the Bond Instrument (there is additional interest) as well as the "Default and Acceleration" section in our deal room for details, but this reaches beyond my area of expertise, so as always, please PM me your contact details and I can arrange for one of the core management team to discuss the technical details of the bond instrument if you wish. Kind regards, Charles On a), many thanks for explaining. On b), if your bond maturity date is always going to be set longer than your loan repayment date then I'd suggest explaining this in the Bond Term Sheet, else someone is going to ask much the same question one every loan! On c), the Bond Instrument's only reference to "additional interest" says "as defined in the Finance Documents". Where are the "Finance Documents" available? Or, more simply, how much is the "Additional Interest" payable on default by the borrower? Also, where can the "Default and Acceleration section in our deal room" be found? Thx.
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Steerpike
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Post by Steerpike on Mar 20, 2017 16:40:24 GMT
charles is it fair to say that an investment made today is quite likely to earn no interest until final close at the end of April?
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SteveT
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Post by SteveT on Mar 20, 2017 16:47:28 GMT
charles is it fair to say that an investment made today is quite likely to earn no interest until final close at the end of April? I believe your interest effectively starts from the first close date after your investment is made (or, put another way, if you invest after the first close then you pay a higher price per bond, as per the Bond Term Sheet, reflecting the accrued interest to date from the first close on 29th March)
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