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Memery Crystal advises The Jockey Club on the Issue of ‘The Jockey Club Racecourse Bond’

07/06/2013

At a glance

Memery Crystal LLP has advised new client The Jockey Club on the development and issue of “The Jockey Club Racecourse Bond” – a non-transferable, non-convertible bond of an initial five-year term on which a return is payable in a combination of cash and rewards points.

This is the first retail bond to be issued by a British sporting group.  With applications received in respect of approximately £20 million (well in excess of the fundraising target of £15 million), The Jockey Club Racecourse Bonds will help to finance a major development project planned by The Jockey Club at Cheltenham Racecourse, including a new state-of-the-art grandstand and other improvements.

In detail

The Jockey Club Racecourse Bond could be applied for by UK and Republic of Ireland based individuals, trusts, charities and companies (including Self Invested Pension Plans). Applicants can apply for between £2,000 and £100,000 worth of bonds.  Interest will be paid at a rate of 7.75% (gross) per annum payable of which 4.75% (gross) per annum will be paid in cash and 3% (gross) payable in Rewards4Racing Points.  These points can be redeemed towards purchases through The Jockey Club’s racecourse websites, including tickets, restaurant packages, hospitality packages and racecards.

With a 263-year heritage, The Jockey Club is the largest commercial group in British horseracing and owns 15 leading racecourses, including Cheltenham, Aintree, Epsom Downs and Newmarket.  Other parts of its Group include Jockey Club Estates, its property and land management arm, which operates the famous training grounds at Newmarket and Lambourn; The National Stud, its Thoroughbred breeding, boarding and education arm; and the charity Racing Welfare, which offers help to all racing’s people in need.

The Memery Crystal team included corporate partners David Walker and Lesley Gregory and regulatory and corporate assistant Rebecca Harding. The team has advised on similar corporate retail bonds for a number of other UK companies, including Hotel Chocolat, The King of Shaves, Ecotricity and Caxton FX.

David Walker commented: “We are delighted to have assisted The Jockey Club with the development and issue of The Jockey Club Racecourse Bond.  With a record-breaking attendance at its major events last year, The Jockey Club is well positioned to undertake further investment in the facilities at Cheltenham Racecourse, and The Jockey Club Racecourse Bond will be an important tool for financing that vision, while providing a healthy rate of return to investors.”

 More information on The Jockey Club Racecourse Bond can be found on www.racecoursebond.com.

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 companies and off-shore funds, as well as for their nominated advisers and brokers.

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