Loan Notes, can anyone explain?
Discussion
Any share experts out there?
I was issued with a Loan Note when a company I had some shares with was relaunched and refinanced under a different name. I also received shares in the new company.
The Loan Note has a face value of around £500, so we're not talking a fortune. So is this all the Note will ever be worth? Has it any more value or should I just cash it in and enjoy the money? I cannot see any info on the note itself.
I was issued with a Loan Note when a company I had some shares with was relaunched and refinanced under a different name. I also received shares in the new company.
The Loan Note has a face value of around £500, so we're not talking a fortune. So is this all the Note will ever be worth? Has it any more value or should I just cash it in and enjoy the money? I cannot see any info on the note itself.
The only loan notes I have seen were a way for one company to finance the acquisition of another.
Instead of giving the target company's shareholders cash, they gave them a combo of cash, shares in the combined new company and loan notes.
The loan notes paid a relatively low yield (around 3% IIRC) and matured 24 months after the date of the transaction.
You should have a prospectus on the loan notes somewhere but if not, I am sure a call to the company should clear it up.
Instead of giving the target company's shareholders cash, they gave them a combo of cash, shares in the combined new company and loan notes.
The loan notes paid a relatively low yield (around 3% IIRC) and matured 24 months after the date of the transaction.
You should have a prospectus on the loan notes somewhere but if not, I am sure a call to the company should clear it up.
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