Temple Cycles Limited
7 years, repayable on 30 June 2029
£400,000. If less than £400,000 is raised,
monies will be returned to investors with no accrued interest.
6% gross per year. Payable in arrears on 30 June
each year (paid net of UK basic rate tax unless held in an IFISA). Payment
of interest and repayment of capital are not guaranteed.
Temple Cycles has the right to repay the bonds
without penalty from 30 June 2025.
The bonds are unsecured, which means that bondholders
will rank equally with Temple Cycles' other unsecured creditors and behind
secured and preferential creditors on insolvency.
A gearing covenant applies which places a limit
on the company’s total permitted borrowings. Whilst the bonds remain
outstanding, repayment of any directors' loans or payment of dividends to any
shareholder are only permitted subject to the retention of a minimum cash
balance of £50,000 after any such payment. An annual dividend cap also applies.
A breach of any covenant constitutes an event of default.
Bonds are transferable but are not listed on any
investment exchange which means that bondholders will have to find a willing
buyer and agree a purchase price with them, which in practice may not be easy.
Investors should be prepared to hold the bonds for their full seven-year term.
Closes on 3 May 2022, unless fully subscribed
earlier or the offer is extended. Bonds are allotted 14 days after close and
investors start to accrue interest from that date.
Capital at risk warning
Past performance is not an indication of future
performance. Capital is at risk and returns are not guaranteed. Investors
should read the offer document in full, including the risks section, before
deciding whether to invest.