Brighton and Hove Albion Holdings Ltd

[Alex Alex Dawson oo! oo!]

The creation of a futher trench of Convertible Unsecured Loan Notes, with a nominal value of £40M, was authorised at the Board meting held on 10th March 2009; this is in addition to the £20M authorised in May 2008.

The redeemable date for both is stated as not before 31st December 2023.

 

[Brovion]

Shouldn't that be 'tranche' not 'trench'? Anyway, good job it's not real money!

 

[Lokki 7]

"Unsecured"?

 

[Wardy]

"Unsecured"?

On the grounds we have nothing to secure it on, I would guess that it is unsecured.

 

[Gritt23]

Does this mean we have someone lurching in the wings waiting to put the money in for Falmer in exchange for these unsecured loan notes then?

 

[Lokki 7]

On the grounds we have nothing to secure it on, I would guess that it is unsecured.

Would it not be tied into the stadium company somehow?

 

[Herr Tubthumper]

The creation of a futher trench of Convertible Unsecured Loan Notes, with a nominal value of £40M, was authorised at the Board meting held on 10th March 2009; this is in addition to the £20M authorised in May 2008.

The redeemable date for both is stated as not before 31st December 2023.

What does this mean in lay speak?

 

[pishhead]

Appologies if I'm being a bit "simple" here but in layman's terms what does this mean.

 

[Gritt23]

"Unsecured"?

Yep. So that is why they would be "bought" by a director who is pumping money into the club rather than a bank who would want it secured against something. Which is why I'm wondering who we are creating them for.

 

[pishhead]

What does this mean in lay speak?

Glad I'm not the only one!

 

[Stoo82]

I love a good old fashioned conspiracy.

 

[Wardy]

Yep. So that is why they would be "bought" by a director who is pumping money into the club rather than a bank who would want it secured against something. Which is why I'm wondering who we are creating them for.

Well I have the winning numbers for Friday's Euro Millions. Though I never said to Dick I would invest £40 million.

 

[Taybha]

we do have some nice portakabins and a pitch cover so its not like we have not got any assets

 

[Stoo82]

Is Russall really worth 40 miilion?

 

[Buzzer]

Someone has or will lend the club £40m and get interest on the loan until it is time to repay it in 2023. The loan is unsecured which means that if the club go belly up those holding the loan notes do not get first dabsies on any of the remaining assets.

Those holding the loan notes do not need to be made public. They are simply another long term creditor

 

[Lokki 7]

Yep. So that is why they would be "bought" by a director who is pumping money into the club rather than a bank who would want it secured against something. Which is why I'm wondering who we are creating them for.

Dunno about a bank, I would want it secured against something also. Tony Bloom is obviously much more of an optimist than me.

 

[Gritt23]

Appologies if I'm being a bit "simple" here but in layman's terms what does this mean.

Not being simple at all, it's a complex thing, which as a qualified accountant I may still have missed one of the ways that we are planning to use them, but my understanding is .....

that it's a formal way of creating a directors loan. Rather than just having a loan account on the Balance Sheet with terms of the loan either agreed or left completely open-ended (which does sometimes happen, but banks HATE that) we could take £60m worth of loans (probably from Directors, but doesn't have to be) and we would issue them with this loan note.

Say, for example, Richard Branson wanted to pump £50m in, we would issue him with £50m worth of these loan notes. For the bank, this is all nice and clear, that he has no security behind this loan (security that teh bank want first charge over) and everyone also knows there will be no need to repay them before 2023 at the very earliest.

 

[DIFFBROOK]

Seems like its not a bank, as they would want some kind of security, esp in this climate. So the question is who has a) £20m and b) £40m. Same person? A new investor

To complete the comspiracy maybe this has something to do with Dick Knights rumoured departure?

It'll all come out in the wash

 

[Gritt23]

Dunno about a bank, I would want it secured against something also. Tony Bloom is obviously much more of an optimist than me.

But that's just the risk the likes of Bloom have to take with the money they pump in, because what little we have (Falmer) to offer as security on a loan, we'll have used.

Therefore, there's nothing left inthe way of security for the lkes of Blooms et al. It's not optimism, it's generosity.

 

[Albalbion]

does this mean come 1/1/24 were f***ed?