The Jockey Club has extended its racecourse bond, which raised about £25m when it launched four years ago. The company operates 15 racecourses across the UK and is behind events such as the Grand National and Cheltenham Festival.
It originally launched its racecourse bond in 2013, raising almost £25m to support the redevelopment Cheltenham Racecourse, including the creation of The Princess Royal Stand. The bond was initially issued for a period of five years, which concludes in June 2018. Investors were offered the opportunity to rollover or extend their investment in the scheme, with bondholders choosing to extend £14.6m for a further three years, rollover £9m and redeem £1m.
Nevin Truesdale, group finance director of The Jockey Club, said: “I’m very pleased we’ve been able to offer investors the opportunity to extend our relationship. The response has been fantastic as a result of the experience we’ve been able to provide, the excellent returns we have delivered and the continued trust in The Jockey Club as a good partner.”It really is win-win because as well as those positives for bondholders, we as the issuer have enjoyed increased loyalty and them spending with us as customers, helping towards the financial equation involved. “Bondholders were a huge part of our £45m development at the Home of Jump Racing and I’m delighted both they and British Racing will continue to benefit from their investment with us.”
The bond provides quarterly cash interest payments at a rate of 4.75 per cent, as well as a further 3 per cent interest in the form of Rewards4Racing points.