Belong Ltd.

Just noticed a potential new issue from the above. The organisation owns and runs care homes for mostly people with dementia and operates care in the home as well. Formerly known as CLS upto 2017 ( doesn't appear to be connected with CLS Holdings a current issuer of a retail bond ).
Road show just announced on RNS earlier this morning.

This could be interesting to a stock starved bunch of investors, me included.
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Comments

  • Hasn't there been recent financial woes with care homes recently ?
  • Yes Colin, I believe one group sold their care home business for just £1
    Lots of buying & Selling in past 2 years
    eg https://www.bupa.co.uk/newsroom/ourviews/bupa-announces-sale-of-part-of-uk-care-home-business

    https://www.theguardian.com/society/2018/feb/28/profit-hungry-firms-gambling-care-homes-stakes-too-high


    However Belong Ltd has a very good credit rating
    Established 1900
    Special Company Type = English/Welsh Industrial & Provident Society
    Profitable

    Companies House search =
    Company type
    Industrial and provident Society
    Refer to the Financial Conduct Authority Mutuals Public Register Links opens in a new tab/window for further information about this company
    https://mutuals.fsa.gov.uk/

    Could be worth a serious look at, due to the lack of Orb bonds being issued
  • Dangerous environment due to dearth of new issues. Will be exploited by issuers and their banking pals as to offer high credit risk, but low coupon and weak covenants, so best not to fall for it. With 10 year US T note at 3% , rates will have to increase, eventually. Pays to wait.
  • Fang, I would tend to agree with you, much depends on the length of the proposed bond (over 7 years is too long) and it's security (perhaps secured on the property assets).
    Patience is a virtue!
    "Banking Pals" - perhaps they may be off loading some of the risk to risk-unaware private investors.
    Very surprised that the price of the Wasps Holding Bond is still above par, despite the accounts being overdue. Too much complacency in the market
  • Shaunm, yes the company details are available at the FCA registry but, unlike entities incorporated under the Companies Acts and registered at Companies House where records are available free of charge, you have to pay the FCA at least £12 to view anything. I complain to the FCA each time I need a document but just get lame excuses.

    Even with all these fees they can’t be bothered to update their web address - still showing fsa which was abolished five years ago.
  • Good aft to all. Just to advise that i understand that an announcement is due 'early next week' via RNS whether float does/doesn't go ahead.There should also be the same news via their website.
    Could well be interesting.
  • Well here it is:

    Retail Charity Bonds PLC (the “Issuer”) today announces the launch of the Belong Limited Retail Charity Bond offering 4.5%, due 2026.
    The offer period is expected to close at 12pm on 13 June 2018 and admitted to trading on the London Stock Exchange’s regulated market and through the electronic Order book for Retail Bonds on or around 21 June 2018.
  • Thanks Beekey for the post. Mmm coupon looks ok but over 6-7 years would have been far better.! Hope Oliver manages to comment on this as always helpful.
  • I don't like these double dates - expected & Legal
    "The Bonds are expected to mature on 20 June 2026 with a final legal maturity on 20 June 2028." Provides greater uncertainty to the normal retail investor.
    Therefore unlikely to participate
    On the same principle, sold my other Retail Charity Bonds in the Spring
  • The coupon is higher than I was expecting, interesting to see what Oliver has to say.
  • Quite a lenghty bond, none of these charity bonds seem to be going nowhere fast. Can't say i'm impressed ; depending on what Oliver says I'll hold fire for now; think there's better options out there.
  • I have not yet seen the prospectus for this , however I would potentially like to apply as bonds suit retired investors. The problem (I was going to say issue) I have is that Interactive Investor no longer handle bond issues. I approach Equiniti about this as they are listed as a broker to this issue and the person I spoke to though Equiniti did not handle bonds at all. What organisation can I buy this through and pay a reasonable charge for a reasonable service? I really cant see any brokers in this area that I can enthuse about.
  • I put an order in with YouInvest
  • Ps. Oliver has done a positive write up, but there is a cut/paste error on the Coupon / Issuer.
  • Gliderpilot - Like Paddy we used A J Bell Youinvest. They are one of the arrangers. It has to be done on-line. No charges too! Get your skates on, I suspect this will close early.
  • Apologies all. I forgot to amend the term sheet and it shows that of the previous issue. I am trying to get it amended. In the meantime here is what it should have said:


    Issuer Retail Charity Bonds PLC
    Charity Borrower Belong Limited
    Instrument Bond secured on a loan to Belong Limited
    Currency GBP
    Nominal Amount GBP TBA
    Retained Bonds GBP TBA
    Ratings Unrated
    Repayment Bullet
    Early Redemption Gilts + 50bps
    Coupon 4.5% Semi-annual in arrear
    Coupon Dates 20 June and 20 December
    Announcement (Launch) 23 May 2018
    Offer Period 23 May to 13 June at 12pm
    Signing Date 18 June 2018
    AD Commission 0.25%
    Issue/Settlement Date 20 June 2018
    First Day of LSE/ORB trading 21 June 2018
    Expected Final Maturity Date 20 June 2026
    Legal Final Maturity Date 20 June 2028
    ISIN Number XS1821505259
    SEDOL [•]
    TIDM BEL1
    Issue Price 100
    Denominations GBP100
    Interest Day Count Fraction Actual /Actual
    Business Day Convention Following Unadjusted
    Listing London Stock Exchange, ORB
    Series Number 8
    Selling Restrictions Only to be sold into UK, Isle of Man and Channel Islands
    Lock- up/ Seasoning None / Tefra C
    Governing Law English law
    Settlement Euroclear, CREST, Clearstream
    Lead Manager Peel Hunt LLP
  • Thank you Oliver much appreciated as usual and no great sweat on the wrong headings-we knew what you meant !
    Anyway looks quite encouraging though not wildly exciting and can see smallish premium at open and fairly stable thereafter.
  • gliderpilot,presuming your over 60yrs (you said retired) Saga share direct are worth looking at. They don't charge annual fees, and are covering the belong offering. They are run by Equiniti and have a good website. Being a retiree myself I have been with them some 10 years. Dealing charges are £11.95 ; less if your a regular trader. Cover a good range of bonds/pibs as well as equities. My be worth looking at their website.
  • edited May 2018
    is there any minimum age limit for applying to Saga share direct?

    Where is Oliver write up posted pls?

    Selftrade run by Equiniti is also offering this bond. I wouldn't be surprised Shareview, also run by Equiniti, is offering this as well.
  • arjunguar, Oliver's brief descriptive is to be found above under ODRB with basic info.There was a ' Bond of The Week' feature too but he had a problem with it so it looks as though its been taken down for amendment
  • arjungaur, I believe all saga products (travel, insurance and share dealing etc ) are only available to us old gimmers, 50 years plus !!
  • edited May 2018
    That's discrimination against non-so old geezers

    Plus it makes little sense to limit your target market from business perspective

    Let me try opening an account and if unsuccessful, i go to the regulator for unfair consumer discrimination
  • arjungaur-the article has been re-instated after alteration under section ' Bond of the week'
    Happy reading.
  • Oliver - many thanks for your write-up on Belong - very much appreciated.

    Woz
  • Yes thank you Oliver, clears up a point prospectus doesnt explain. Seems like it will close early this am.
  • Hello Hind, do you know from a good source that the issue could be closed today.? i only ask as i have put in for a sizeable tranche and was thinking of additional volume but only tomorrow when more funds are in place. H.L. told me yesterday that interest was slowish.
  • Try idealing.com home page
  • Thanks for the comments people made about where I could buy this. I placed my order through A J Bell yesterday. There seems to be a problem with the stock market system for announcing bond issues as I never got an email about this, which in the past I have, unless this is due to new data rules. I have therefore resubscribed.
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