If you have applied then you will be contacted to confirm the status of your application shortly.
How much are you planning to raise?
The Company is aiming to raise up to £2m by the issue of Golfbreaks Bond 2. The Company may, in order to satisfy demand, issue up to £5m of Golfbreaks Bond 2 in total.
What will the money be used for?
Proceeds from the Golfbreaks Bond 2 will enable us to accelerate our expansion plans and take advantage of some clear market opportunities. We have identified four key areas that will take our business forward: our UK business; our US business; our Scandinavian business; and technology.
Why are you issuing bonds rather than borrowing from the bank?
When it came to deciding how best to fund the next stages of our growth, we made a very deliberate decision to find a way of giving a return to our customers and involve them more closely in the continuing growth of the business. We wanted to create a simple investment opportunity that would cut out the middlemen and provide investors with a rate of return that would beat the UK high-street banks – so we created the Golfbreaks Bond 2.
Why have you decided to issue a Bond again?
Since the successful issue of the Golfbreaks Bond 1, our Bondholders have benefited from an annual return of 7.5% (gross) or, in the case of Bondholders who receive their interest in the form of Breakpoints, 10% (gross) per annum. Therefore, we thought it would be an attractive proposition to offer our Bondholders and a wider audience a chance to again receive a return on their money which cuts out the banks. For administrative ease, and to make the proposition as straightforward as possible, we have decided that Golfbreaks Bond 2 will pay interest in cash only, again at the rate of 7.5% (gross) per annum. Unlike the Golfbreaks Bond 1, Golfbreaks Bond 2 will pay interest to you every six months (rather than once a year, as under the Golfbreaks Bond 1).
Who can invest?
Individuals who are over 18 years old and reside in the UK, or a trust, company or charity that is resident in the UK and/or is not prevented by the laws of its governing jurisdiction from applying for or holding Golfbreaks Bond 2.
Is this bond ISA friendly
Should individual investors wish to consider placing an investment in Golfbreaks Bonds 2 into a Self-Invested Personal Pension (SIPP), Applicants will need to seek advice as to whether the specific terms of the SIPP arrangements permit this type of investment. If so, it is likely that the Applicant’s SIPP provider will need to apply for the Golfbreaks Bond 2 directly. Golfbreaks Bond 2 are not currently suitable for Individual Savings Accounts (ISAs).
What is the tax position if you are an individual?
The precise tax treatment of a Bondholder will depend on the Bondholder’s individual circumstances and law and practice in force at the relevant time and may therefore be subject to change in the future. Prospective acquirers of the Golfbreaks Bond 2 are advised to consult their own professional advisers concerning the tax consequences of the acquisition, ownership or redemption of the Golfbreaks Bond 2 and any benefits derived thereon. The Company will be obliged to withhold basic rate tax (currently 20%) on payments of cash interest to Bondholders. The ultimate liability to tax in respect of the total return on the Golfbreaks Bond 2 will depend upon the individual circumstances of each holder at the relevant time and may be subject to change. A Bondholder who is subject to UK income tax at a rate not exceeding the basic rate is not liable for additional income tax on the total return on the Bond. A Bondholder who is subject to UK income tax at higher rates of income tax may be required to pay additional tax after taking into account tax withheld at source by the Company. A Bondholder who is not normally subject to tax in the UK may be entitled to claim repayment of the tax withheld at the basic rate by the Company from HMRC. No liability to UK capital gains tax should arise on the issue of the Golfbreaks Bond 2 or their subsequent redemption. A holding of Golfbreaks Bond 2 should form part of a Bondholder’s estate for inheritance tax purposes. No UK stamp duty or stamp duty reserve tax will be payable on the issue of the Golfbreaks Bond 2 or their subsequent redemption. In principle, the interest on your Golfbreaks Bond 2 will qualify for the new Personal Savings Allowance (PSA). However, you should seek your own tax advice as to how the PSA will apply in your particular circumstances.
What is the tax position if you are a corporate investor or charity?
Corporate investors resident in the UK for corporation tax purposes should be eligible to receive semi-annual payments of interest gross where that corporate investor has belief of the Bondholder’s corporate status, as there is no withholding tax obligation. Such corporate investors will have to pay tax on the interest received at the applicable corporation tax rate according to their profits and status. If the Bondholder is a non-UK corporate, the Company is obliged to deduct basic rate tax. It may be possible for that Bondholder to benefit from reduced withholding tax on interest. Charities resident in the UK for UK tax purposes will also receive interest gross.
Is the bond guaranteed?
Golfbreaks Bond 2 are unsecured corporate bonds issued by Golfbreaks Bonds plc, a wholly owned subsidiary of Golfbreaks Limited, which has guaranteed to satisfy the payment obligations (in principal and interest) of Golfbreaks Bonds plc.
What is the offer period?
The Golfbreaks Bond 2 is open to applications from 9am on Monday 3rd October 2016 until 5pm on Monday 31st October 2016. There is a priority period from 9 am on Monday 3rd October 2016 to 5pm on Monday 17th October 2016 for holders of Golfbreaks Cash Bond 1 to rollover their investment to Golfbreaks Bond 2.
What happens if we are oversubscribed?
The Company reserves the absolute right as to whether to accept your Application for Golfbreaks Bond 2 in whole or in part (in multiples of £1,000, subject to a minimum investment of £2,000 and up to a maximum amount of £100,000 per Applicant). Therefore, the Company may accept your Application in whole or in part only of the nominal amount of Golfbreaks Bond 2 applied for in your Application (in which case the balance of the amount paid by you in respect of the Golfbreaks Bond 2 that were not issued to you would be repaid to you).
How does the bond rank in credit terms?
The Golfbreaks Bond 2 are an unsecured debt of the Company and will rank pari passu with all future unsecured debts of the Company. There is no certainty or guarantee that the Company or the Guarantor will be able to repay them. If the Company or the Guarantor were to become insolvent, there is a risk that (a) some or all of principal amount of the Golfbreaks Bond 2 will not be redeemed or repaid, and (b) some or all of the interest due on the Golfbreaks Bond 2 will not be paid.
Can I pay by installments and top up my holding in Golfbreaks Bond 2?
Unfortunately, you will not be able to pay for your Golfbreaks Bond 2 in instalments, nor can they be topped up. All paper Application Forms must be accompanied by a cheque and all online Applications must be accompanied by a debit card payment or bank transfer for the full amount of Golfbreaks Bond 2 applied for. We are unable to accept Applications that are not accompanied by payment for the full amount of Golfbreaks Bond 2 applied for.
Can I change my mind?
Yes, provided you do so within 14 days of your completed Application Form being received or your Application being submitted online. If you contact Neville Registrars Limited in writing before then, they will refund your online payment or your cheque. If you wish to cancel your Application, you should write to Neville Registrars Limited at Golfbreaks Bond 2 Offer, Neville Registrars Limited, Neville House, 18 Laurel Lane, Halesowen, West Midlands B63 3DA. After this date, your Application will be irrevocable and will not be capable of being terminated or rescinded by you.
What return do I receive on my investment and is the interest rate fixed?
The Golfbreaks Bond 2 will yield a fixed return of 7.5% (gross) per annum on your initial investment, payable in cash. Interest is paid every six months in arrears. The Company will be obliged to withhold tax at the UK basic rate (currently 20%) on all payments of interest (please see page 19 for further details). This means, for a UK basic-rate tax payer, if you invest in £5,000 of Golfbreaks Bond 2, the aggregate interest you will receive, net, over the four-year initial fixed-term of the Golfbreaks Bond 2 will be £1,200 (see page 19 of the Invitation Document).
I would like to participate – what do I do now?
Before making an Application (whether online or by post), you will need to complete a short Appropriateness Questionnaire. This is a requirement of the Financial Conduct Authority’s new rules to ensure that you understand the nature of the investment you wish to make. The Appropriateness Questionnaire can be accessed online on the Golfbreaks Bond 2 website, bond.golfbreaks.com. Subject to supplying answers that are satisfactory to the Company, you will then be able to submit your Application – either online together with payment by debit card or bank transfer in respect of the full amount of Golfbreaks Bond 2 applied for, or by printing the Application Form and returning it by post to Neville Registrars, together with a cheque in payment for the full amount of Golfbreaks Bond 2 applied for by the Long Stop Date (being 5pm on 31st October 2016). Further details of how to apply are on page 9 of the Invitation Document. Holders of Golfbreaks Bonds 1 who are rolling over their holding of Golfbreaks Bonds 1 into Golfbreaks Bond 2, and who are not applying for any additional Golfbreaks Bonds 2 to be issued to them, will not be required to make any payment (whether online or by cheque or upon the issue of Golfbreaks Bond 2).
When and how will receive interest payments?
Interest accrues from day to day at the Interest Rate and is payable to the Bondholders in cash by semi-annual payments in arrear by reference to each Interest Record Date until the Golfbreaks Bond 2 are repaid under the terms of this Instrument and shall be paid to the Bondholders within 10 Business Days of such Interest Record Date.
Would holding the bond mean I have shares in the company?
No, Golfbreaks Bond 2 are not convertible into shares and the Bondholder does not have any ownership interest in the Company or any member of the Group. It is an unsecured loan for a fixed period, paying a fixed rate of interest.
Can I withdraw my money prior to the end of the term?
Unfortunately not. Golfbreaks Bond 2 are issued for an initial four-year term and are non-transferable and non-refundable. The Company may, at its option, repay all or part of the Golfbreaks Bond 2 at any time after the first anniversary of their issue.
How do I redeem my bonds?
If you so choose, upon six months’ notice being given by you, the Company will repay your Golfbreaks Bond 2 in full after the initial fixed term of four years. In order to redeem your Golfbreaks Bond 2, simply complete the notice of redemption on the reverse of your Bond Certificate and return it to the address printed on the certificate at least six months prior to the redemption date (being the end of the four-year initial fixed term or a subsequent 12-month period). Until a completed notice of redemption is received, your holding of Golfbreaks Bond 2 will automatically continue and be capable of redemption at least six months prior to each subsequent anniversary of the issue of the Golfbreaks Bond 2. The Company may, at its option, repay all or part of the Golfbreaks Bond 2 together with accrued interest at any time after the first anniversary of their issue, but will not receive any premium or further interest.
Can the company pre-pay my bonds?
In addition to Clause 6.1, the Company will be entitled to pre-pay any or all of the principal amount of the Golfbreaks Bond 2 together with Interest accrued thereon at any time after the first anniversary of the Commencement Date.
Can I sell or trade my bonds?
No, Golfbreaks Bond 2 are not transferable and they cannot be sold or traded. The interest coupon and redemption payment are payable to the original Bondholder.
What happens if I die while holding bonds?
Golfbreaks Bond 2 would form part of your estate and title to them would initially be held by your executors or administrators of your estate. Your executors or administrators would hold the Golfbreaks Bond 2 until transferring the title of the relevant Golfbreaks Bond 2 to the intended beneficiary by sending to Neville Registrars Limited an executed transfer in a form reasonably acceptable to the Company.
Should I discuss this with an independent financial adviser before investing?
We strongly recommend that you do seek the advice of an independent financial adviser authorised by the FCA to conduct investment business and who specialises in advising on investments in shares and other securities, including unlisted securities.