Lendinvest - New Retail Bond 5.25% 2022

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Comments

  • This one went a little like the bank holiday weather ...


    RNS Number : 4801J
    LendInvest Secured Income PLC
    29 March 2018


    LENDINVEST SECURED INCOME PLC

    5.375% STERLING NOTES DUE 2023

    Final Terms Confirmation Announcement


    .....

    Issue Date:

    6 April 2018

    Aggregate Nominal amount of Notes:

    £ 40,000,000

    Estimated net proceeds of the offer:

    £ 35,247,100

    Estimated expenses relating to the offer:

    £ 600,000

    .......

    [1] Of the £40,000,000, £4,152,900 will initially be held as treasury stock by a member of the Guarantor's

    Group and will not be made available at below 100% of their nominal value
  • Thanks for the info

    Yes - was watching for the news that it was closing early that never came !

    They might have to wait a bit for 100% of nominal value, we'll see

  • For the new issue: bid = 99.9p offer = 100.5p
    Very far from the worst case scenario.
    Roger.
  • it should trade around par for a while, there's a lot of stuff going on with Prefs and the markets in general for this to get a lot of attention.
  • I hold some of the 2023 issue (LIV2) - now I am considering parking some cash in these - LIV1 - which mature next year.
    Haven't time right now to work out YTM exactly but it looks like somehere around 4.7%

    Anyone willing to talk me out of this, as that looks rther high for a short term investment

    Woz
  • I hold a small amount of these. My spreadsheet is showing the mid price as 100.65 (YTM 4.74%), but the spread is quite large with the quoted offer price of 102 (YTM 3.68%). I suppose it depends on what price between these that you can get.
  • Euro17 is right it will all depend on what price you can get. Doesn't look like many are traded each day. I haven't checked how they are doing in any great detail but bond price held up pretty well during the last year. I have a small holding in the 2022 bonds that I will just leave to mature. Looks like the Provident, Burford and Alpha Plus bonds are the only Orb bonds yielding more (if we ignore Wasps) and everything else is under 3%
  • AT end of December. 75 loans totalling £49.7m. 2 in arrears totalling £3.9m, arrears meaning more than 3 months past due.

    I don't really know to interpret it.
  • Wozzitworthit/All above-Just for general interest just bought a few of the [email protected]£99.99 giving a YTM excl commission of 5.25% according to the calculator on here.Strange thing is the quoted spread was 99-102 and I got the offer at 99.99 even though I presumed the buy price would be maybe 101.50 or so ( and sale price of maybe 99.50 ). According to the LSE website on 23/4 there was a trade of 47000 @ 100.00 and on the 21/4 a trade of 25000 & 99.44-I presumed these to be sales but think they could well have been purchases also.
    So all in all never rely on LSE price spreads and like me make presumptions without testing the water. !
  • Interesting!
    Which broker did you use please?
    Online or by phone?
    Thank you.
  • Hi dandigirl-I used H.L. ( tried A.J.Bell and pricing was same ) in the end and online with comm at £11.95 rather £50 over phone. I only bought 11300 so happy with price. Interestingly the trade is still not recorded on official LSE site.
    Happy hunting !
  • Tried to buy some through EQI but no luck, no quantity is available online. not even 1k. They seem to be going downhill. The move to ii cant come soon enough
  • Having read the accounts there only seems about 35m equity for the 850m loan book, which seems low to me. However imagine the 40m 2023 ranks after these ? if so the 75m on 850m looks and feels better.
  • capucino-fyg i tried " spoof " trades first with H.L. for 25000 and was also offered stock so there doesn't appear to be any shortage. So yes not impressive with EQI.
  • Capucino, on Eqi you have to leave in your max buy price, so pick it at the price showing or even just under. Leave it with them with the button options. It will then be seen under the open orders tab. I sold all my corporate bonds this way after being repeatedly told not possible. It just means they do not have a buy/seller at that exact time. And yes I agree, roll on interactive.

  • that is what i do indeed, and i managed to sell some ERO1 bonds last week this way, but it is so much nicer to have an instant price quote.

    The other issue is that on the 2 orders I placed last week on ERO1, one was sold for less than the minimum price I told them to. I did not make a fuss as the bond continues dropping afterwards but i certainly dont want to pay more than par for LIV1.
  • Hi Hind,

    I'm not a fan of these. If the coupon on the bond is 5% and then need say 3% to cover administration costs and make a profit, then they have to be lending at around 8% to their Clients. (well not exactly as they have some accumulated profits but let's not pick that apart)

    It's all great when the economy is doing well but if any downturn appears that equity is going to get eaten into.
  • I was actually looking at these from the opposite point of view - the economy has had a couple of massive shocks over the last year or so and yet they have seemed to do ok and made profits
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