Golden Lane Housing 4.375% Bonds due 29 July 2021

Does anyone holding these bonds have any information regarding maturity? There is an option by the company to extend the maturity, the terms of the Bonds
allow for a deferral of the repayment until 29 July 2023 (the “Legal Maturity Date”). I have checked with my Broker interactive investor, but there is nothing under corporate actions. Appreciate any help.

Comments

  • No idea, they could extend although that would be at a higher than market rate, so maybe not, they could do a new issue, or they could find an alternative source of financing, any of these could easily happen.
  • Looked at the prospectus (cant seem to attach it here) and found this: The Bonds will be subject to Appendix B (“Terms and Conditions of
    the Bonds”).
    The Bonds:
     entitle the Bondholders to receive semi-annual interest
    payments at a fixed interest rate of 4.375 per cent. per
    annum, subject to Condition 8;
     have a nominal amount of £100 per Bond;
     are scheduled to be redeemed on 29 July 2021, although
    if the Charity fails to repay the Loan on that date,
    redemption shall be deferred until 29 July 2023 without
    default. If the Charity fails to repay the Loan on 29 July
    2021 and repayment is deferred until 29 July 2023, under
    the terms of the Loan the rate of interest payable on the
    Bonds will increase by an additional 1.00 per cent. per
    annum;
     will be redeemed at 100 per cent. of their principal amount
    on 29 July 2021 or if redemption is deferred on 29 July 2023;
  • Notice of the application of this Condition 10.3 (including the amount of any unpaid principal and the
    subsequent receipt of any unpaid principal) shall be given by the Issuer to the Trustee, the Registrar,
    the Paying Agents, any stock exchange on which the Bonds are for the time being listed and, in
    accordance with Condition 16, the Bondholders, as promptly as practicable in the circumstances.

    16. NOTICES
    For so long as all the Bonds are represented by the Global Bond and such Global Bond is held in its
    entirety on behalf of Euroclear and/or Clearstream, Luxembourg, all notices regarding the Bonds will
    be deemed to be validly given if delivered to Euroclear and/or Clearstream, Luxembourg for
    108
    communication by them to the holders of the Bonds and, in addition, for so long as any Bonds are
    listed on a stock exchange or are admitted to trading by another relevant authority and the rules of
    that stock exchange or relevant authority so require, such notice will be published in a daily
    newspaper of general circulation in the place or places required by those rules. Any such notice shall
    be deemed to have been given to the holders of the Bonds on the first Business Day following the day
    on which it is so delivered to Euroclear and/or Clearstream, Luxembourg.
  • Yes, that is the extend condition, which was well flagged up on the issue date, Golden Lane can borrow at lower rates than 5.375, so it would be a bit suprising if they went down this route.
Sign In or Register to comment.