Greenwich Leisure Limited (GLL) 2013 5% Bond issue - offer extended
We are pleased to report that the level of interest in our recent Bond Issue has been extremely positive in its opening few weeks. We have already raised comfortably in excess of the Minimum Subscription, having secured £2.5 million from a variety of investors. This includes support from 300 individual investors and a number of established institutional investors such as the Rathbone Ethical Bond Fund. In order to take advantage of the continued interest in the Offer we have extended the deadline to 12:00 noon on Friday 20 December (unless fully subscribed before that date). We appreciate your interest in the Bond and look forward to working with all Bondholders to deliver our social and sporting inclusion targets.
GLL is one of the UK's largest charitable social enterprises, delivering diverse services across a variety of health, fitness, sport, library, arts & cultural facilities - all with a strong focus on affordability and accessibility for everyone in the community. Established in 1993 with a portfolio of seven leisure centres, we now manage over 130 leisure centres and libraries in partnership with over 30 local councils, public agencies and sporting organisations. We employ a diverse workforce of over 6,000 and generate an annual income in excess of £120 million.
Our purpose is to provide better community facilities that everyone can access. We hope to increase sport and leisure participation amongst the public (particularly amongst under-represented groups in the communities we serve) and to keep public libraries open whilst improving the services they offer. As a charitable social enterprise, surplus cash is reinvested back into the services we run, further aiming to improve the health, happiness, social welfare, educational and employment prospects of the communities in which we operate.
To help further our growth ambitions, we are issuing a Bond, promoted by our sustainable banking partners Triodos Bank NV, offering investors an opportunity to help contribute to our charitable social mission, as well as achieving a market conforming financial return. Please read the Investment Memorandum and we hope you decide to support our 2013 Bond Issue.
We have identified a number of new investment opportunities that can help accelerate our growth, and also, make a positive social impact. In order to pursue these opportunities, we are looking to raise £5 million through the launch of our 2013 Bond. The funds raised through the bond issue will be specifically used to further our charitable objectives and, in particular, to support the following new projects:
- The restoration of the Royal Greenwich Lido, Charlton – restoring a heritage facility in South London for community benefit.
- The delivery of our sport and social legacy commitments – including helping to transform the Olympic Aquatics Centre and Copper Box Arena for the benefit of the host boroughs and the wider London Community.
- Health & Fitness developments in Sidcup and Romford – creating accessible and inclusive health and fitness facilities that are available for everyone within the constituent communities.
Our Bond will include the following key features:
- Amount – £5 million
- Amount raised by 1 November - £2.5 million
- Term – 5 years (repayable in full on 31 October 2018)*
- Interest – 5% gross per annum - fixed and payable annually in arrears (on 31 October)
- Status – Issued directly by GLL (unsecured) with Net Asset and Bond Interest Cover covenants
- Use and social impact – the development of specific community sports and leisure facilities for the health and employment benefits of our communities, particularly hard to reach groups.
- Minimum investment – £2,000 for new investors (£200 for GLL employees)
- Timetable – launch 16 September 2013
- Closing Date – 12:00 noon on 20 December 2013 (unless fully subscribed before that date).
Note*: the Bond Instrument provides that GLL will redeem bonds earlier than the repayment date in the event of the death of the Bondholder.
- The bonds are an unsecured investment meaning your capital is at risk
- GLL's ability to repay the bond on 31 October 2018 or at all is dependent on the continuing success of its business model and planned means of refinancing
- The bond will not be repaid until 31 October 2018 and investors should be aware that they may therefore not be able to get their investment back until the scheduled repayment date
- The bonds are transferable but will not be listed on a recognised stock exchange. Instead, they will be registered for trading on Ethex. Through Ethex, bondholders may be able to buy and sell bonds on a matched bargain basis. There can be no guarantee that a secondary market in the bonds will develop, whether on the secondary trading platform provided by Ethex or otherwise.
- An investment in the GLL bond is not part of the Financial Services Compensation Scheme
Important note: An investment in the Bonds may not be suitable for all recipients of this document. A prospective investor should consider carefully whether an investment in the Bonds is suitable for them in the light of their personal circumstances and the financial resources available to them. Investment in an unquoted security of this nature, being an illiquid investment is speculative, involving a degree of risk. It may not be possible to sell or realise the Bonds or to obtain reliable information about the risks to which they are exposed.