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Welbeck specialises in Convertible Loan Notes for AIM listed companies or those in the process of being admitted to the market.

Our clients are typically looking to support a major growth event such as entering a new market, launching a new product or making a new acquisition.

The investors we work with are most of the top tier institutional investors in the AIM market.

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Expertise Based On Experience

As at March 2017
  • Members of the Welbeck team have introduced £90M of capital to private and public companies.
  • Of the £33M in transactions that have exited to date, the IRR has been 20% with a return of £43M.
  • Current transactions represent £57M of invested capital. Returns to date reflect interest payments.
  • All the CLNs benefit from senior security and pay an annual coupon of 8 – 10%.
  • Investors in the Convertible Loan Notes have included Miton Group, Axa Framlington, Herald Ventures, Octopus Investments, City Financial, Heritage Capital Management and Harwood Capital LLP.

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We believe that Welbeck is the most active player in the CLN market and as at March 2017 we have already worked on over £15M of investment.

28th April 2017

Convertible Loans

The key points for a Convertible Loan Note are:
  • Amounts £1M to £20M
  • 5-year duration
  • Secured through a “covenant lite” structure
  • Pays a coupon, typically 8% - 10% per annum, quarterly in arrears
  • Have the right to convert into equity at a 20% - 30% premium to the placing price, not a discount, and so reduce the dilution effect of the fund raise to existing investors
  • Can be structured to be VCT compliant
  • Our CLNs are normally listed on a recognised exchange, for which we prefer The International Stock Exchange (TISE) to ensure they qualify as an acceptable security for institutional investors.
  • Throughout the process, we always work closely with your Nominated Advisor and Broker.
Track Record