Memery Crystal advises Hotel Chocolat on its second ‘Chocolate Bond’ Offer

The two bonds include:

• The ‘Hotel Chocolat Bond’, which pays interest by way of Hotel Chocolat Cards that can be used for Hotel Chocolat products at all of its shops, Cocoa Bar-Cafes and restaurants, or online, at a 7.25% (gross) rate of interest.  Applicants can apply for the Hotel Chocolat Bond in multiples of £1,000 up to a maximum £50,000.
• The ‘Tasting Club Bond’, which pays interest in the form of chocolate Tasting Boxes from The Chocolate Tasting Club plc, part of the Hotel Chocolat Group, at a 7.33% (gross) rate of interest. Applicants can apply in multiples of either £2,500 or £5,000 up to a maximum £10,000. Investors in the £2,500 Tasting Club Bond will receive six free Tasting Boxes per year, investors in the £5,000 Tasting Club Bond will receive thirteen Tasting Boxes per year plus, and each will receive an annual Excellence Selection.

Applications for both Bonds must be made by 9 June 2014.

Hotel Chocolat is one of Britain’s fastest growing companies, with activities stretching from a 140-acre cocoa estate on Saint Lucia; manufacturing operations in the UK; a thriving Chocolate Tasting Club with over 100,000 members; and over 70 retail stores in the UK as well as stores in Boston and Copenhagen. Proceeds from the Chocolate Bonds will help Hotel Chocolat to create more employment in Britain, expand further into Cocoa Bar-Cafés and restaurants, export more of its British chocolate and continue to develop its cocoa plantation.

The Memery Crystal team was led by corporate partner David Walker and included corporate associate Melanie Jory and corporate trainee Edward Williams. Memery Crystal, again led by David Walker, previously advised Hotel Chocolat on the development and issue of its first ever “Chocolate Bond” in 2010, which raised nearly £4.2 million.  The team has also advised a number of other UK companies on the issue of retail corporate bonds, including the The King of Shaves, Ecotricity, Caxton FX, The Jockey Club, Firerock Energy and SmartWater Technology.

David Walker commented:  “We are delighted to have worked with Hotel Chocolat again on the development and issue of its second Chocolate Bond offer, which will be an important tool in financing its further expansion. Having worked on more retail corporate mini-bonds than any other UK law firm, we are excited about the benefits they have brought to so many companies and organisations across a wide range of sectors, and that they are continuing to gain in popularity.”

Memery Crystal is a recognised leader for its corporate finance work, covering M&A, private equity and IPO/fundraising for UK and international companies.  The firm has been highly ranked for its excellence in handling M&A and IPO deals by both Chambers UK and The Legal 500, acting for public and private companies as well as for their nominated advisers and brokers.