MRG Finance UK PLC 7.00% Bonds 2023

[KrispyDuck]

Any thoughts on this unusually "generous" upcoming bond? (MRG=Monoco Resources Group).

[stevensfo]

I've never heard of them. There's a bit more info here:

https://www.fixedincomeinvestor.co.uk/x ... urce-group

[Alaric]

I've never heard of them.

Monaco Resources Group. A privately owned company based in Monaco.
https://www.monacoresources.com/

You get your money back in 5 years and 7% in the meantime. Whether that's the right price for the risks and indeed what the risks are is entirely another matter. Perhaps the listing material on selftrade goes into more detail.

[gbjbaanb]

The "advertisement, not a prospectus" booklet linked from seftrade says the company has been around since 2006 and trades in 3 divisions that are risk-averse (ie doesn't do speculation on prices); metals, agriculture, and logistics and tech.

It doesn't seem to be doing well for cash flow at 1.8m last year - down from 48m. That is a worry and is probably why they are issued at 7%, but its not a share price we're looking at here, its general stability to repay.

So all in all, I'm tempted but very wary indeed. they're asking for 300m here, which seems a lot as they have assets of nearly 500m. The business is declining, but I'm not sure if that because its pants, or because of the cyclical nature of much of it, like shipping and commodities.


I think I probably won't buy them, though I have a temptation to buy a load just to sell on post-IPO

[Alaric]

I think I probably won't buy them, though I have a temptation to buy a load just to sell on post-IPO

It's likely to have a wide spread, I would have thought, which is an additional risk factor for anyone not absolutely intending to hold to maturity.

[Holts]

The "advertisement, not a prospectus" booklet linked from seftrade says the company has been around since 2006 and trades in 3 divisions that are risk-averse (ie doesn't do speculation on prices); metals, agriculture, and logistics and tech.

It doesn't seem to be doing well for cash flow at 1.8m last year - down from 48m. That is a worry and is probably why they are issued at 7%, but its not a share price we're looking at here, its general stability to repay.

So all in all, I'm tempted but very wary indeed. they're asking for 300m here, which seems a lot as they have assets of nearly 500m. The business is declining, but I'm not sure if that because its pants, or because of the cyclical nature of much of it, like shipping and commodities.


I think I probably won't buy them, though I have a temptation to buy a load just to sell on post-IPO

Their poor cash flow likely behind their decision to make the first payment one year in arrears and then six monthly , that alone has put me off .

[patch]

Having trouble finding who is behind this company. Not very opaque. Its incorporated in Monaco but only one share holder who are Cypriot. The one shareholder is called "Cycorp First Investments". Not much information at their website ( . cycorp. com. cy . The listing document says to look up Cycorp's accounts at the Cypriot Chamber of Commerce website. Could not find anything. Alot of it is in Greek!

Did a fair bit of research and am not very impressed. No Chairman, board of directors and some of their units look questionable to say the least. For example, their UK unit "R-Logitech (UK)" is about to the struck off for not filing its accounts according to companies house website (companieshouse.gov.uk/company/10316322). Many of their UK units seem dormant. It does not indicate this in their accounts. Some of their UK units run negative balance sheets. Oh, and their Nectar Business had a £2m "exceptional" currency gain which does not seem to be reflected in the group balance sheet. So you need to knock £2m off the profits for last year.

I wont be investing.

[KrispyDuck]

I tend to agree with the negative sentiments expressed here and have decided not to invest. Initially I thought there might be profit in a quick flip but I don't see much appetite for this one so it may not trade above 100p, despite the superficially interesting coupon.

Also, AJ Bell website is now showing an extension to the IPO closing date so it would seem there's some problems getting this off the ground.

A pity... I have too much cash desperately seeking a good home. There's only so much BBYB and 42TF that one should stuff into a portfolio