CLS HOLDINGS PLC 5.50% BDS 31/12/2019

I received a notice from Selftrade on Friday stating that these are to be redeemed by CLS before the end of July. I would have cut and pasted the actual message, but Selftrade pdfs are a bit flaky at the moment. I believe the price will be 1% above the respective gilt rate (whatever that is!). Perhaps someone more knowledgeable can confirm the price.

Comments

  • Bit annoying as this was still paying quite a nice YTM based on the current price.

    Link to announcement is here - www.londonstockexchange.com/exchange/news/market-news/market-news-detail/CLI/13679749.html

    There are 65M bonds are in circulation and they say the cost will be £68.7M so my back of an envelope calculation says to me that they will be paid off at 105.6p but that could well be wrong so please DYOR. I don't know if they include some costs in that £68.7M figure.
  • Euro17, Many thanks for this notification, very useful information.
    Hopefully the price will be close to or above 105.00 (yield 2.16%), which makes it worth while removing it from the portfolio.
    I generally sell Orb bonds maturing within 12 to 18 months. (low yield)
  • More information today :

    The Company has announced that pursuant to Condition 5(c) of the terms and conditions of the Bonds, the Issuer will fully redeem all of the Bonds outstanding on 31 July 2018. The redemption price per Bond will be calculated in accordance with Condition 5(c) of the terms and conditions of the Bonds on the Calculation Date, 27 July 2018, and will be announced shortly thereafter.

    Interest accrued to (but excluding) the Optional Redemption Date will also be paid. Following redemption, the listing of the Bonds on the Official List of the FCA and the admission of the Bonds to trading on the Regulated Market of the London Stock
    Exchange plc will be cancelled.
  • Many thanks CatoCR.
    Now, what to do with the proceeds??
  • That is the problem. I also have a large tranche of 'IC55 NEX GROUP PLC STG 5.50% GTD NTS 31/07/18' maturing on the same date !
  • Euro17: Yes, me too. If the deluge of cash does come through today then perhaps a few more Regional REIT? Closure is tomorrow noon.

  • "if the deluge of cash does come through today" - Ah, I'm guessing yours hasn't arrived yet either. No sign of it in my iDealing account which is also still showing my CLS holding in my portfolio.
  • My 'deluge of cash' has begun. Nothing yet in my Youinvest SIPP, but I have had my principle amounts returned in my Selftrade ISA from both IC55 and CLS1.

    For CLS1, I have received GBP1.052959 per bond. So from CatoCR's post, I believe I am still owed about 4.5% interest for July interest to make it up to 105.745977 per £100. I am also waiting for the last interest payment for IC55. For some reason the interest on maturing bonds always seem to be payed a bit later than the principle amount.

  • My account credited today with the principal plus £45 which I assume is the correct July interest based on £10,000 nominal held.

    Glad that it didn't credit to my account yesterday which is what I was expecting as I was all set to put it all into NEXT shares. Sometimes you just know that someone is looking down kindly on you.
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