To safeguard the rights of Bondholders, FRE plc offers the following:
1. First legal charge over assets
This is the legal right for a lender to decide what to do with a property if the borrower defaults on repayment. In the case of a home mortgage, the bank will hold first charge on the property until the mortgage is fully repaid.
In the case of FRE plc Bonds, FRE plc (the borrower) grants first legal charge to the Bondholders (the lender). Bondholders will hold first charge on all FRE plc’s land and assets until the full capital amount has been repaid. In the event of default, Bondholders will have the right to decide what to do with FRE plc’s property in order to recoup their investment.
2. Independent security trustee
A security trustee is an independent party who holds security interests in trust for creditors. The trustee has the legal power and duty to manage those interests for the benefit of creditors, in this case, Bondholders.
FRE plc has appointed as its security trustee Talbot Capital Ltd, a boutique financial services provider based in the City of London. Talbot Capital was established in 2008 and specialises in institutional brokerage, fund administration and depository and corporate finance.
Talbot Capital is run by a team of market professionals under the directorship of Paul Price and Gregory Pritchard, both experienced in the administration of financial markets and fund advisory. It is a company that prides itself on providing a high standard of advice and service in keeping with the FCA’s regulatory requirements.
For more information please visit Talbot Capital Ltd’s website – www.talbotcapital.co.uk