Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

New Enquest Retail Bond 9% Due 2027

Gilts, bonds, and interest-bearing shares
tincture
Posts: 11
Joined: November 10th, 2016, 1:58 pm
Has thanked: 2 times
Been thanked: 1 time

Re: New Enquest Retail Bond 9% Due 2027

#491961

Postby tincture » April 5th, 2022, 7:36 pm

Before we get too carried away with the prospect of something yielding 9%
Does anyone know roughly the price of oil required for Enquest to be viable? (I remember the PIK toggled at average of $80 over the prior 6months or something).
I would only hold only in the short term as I don't generally want to hold fixed income in inflationary environment and price of oil could do anything in medium term

Chris

hiriskpaul
Lemon Quarter
Posts: 3857
Joined: November 4th, 2016, 1:04 pm
Has thanked: 683 times
Been thanked: 1493 times

Re: New Enquest Retail Bond 9% Due 2027

#492020

Postby hiriskpaul » April 5th, 2022, 10:25 pm

tincture wrote:Before we get too carried away with the prospect of something yielding 9%
Does anyone know roughly the price of oil required for Enquest to be viable? (I remember the PIK toggled at average of $80 over the prior 6months or something).
I would only hold only in the short term as I don't generally want to hold fixed income in inflationary environment and price of oil could do anything in medium term

Chris

Enquest has been a punt on the price of oil all the way. At one point I thought we might have to take some equity in restructuring as the price of oil went so low, but it went into reverse and Enquest are in a much better shape. Their viability is exceptionally difficult to judge. It is not just the price of oil, but the prices they fix at.

Labour keep banging on about windfall taxes as well, although Enquest might make a good case to be spared that due to the mountain of debt and previous losses.

Then there are the ever present risks with any small oil company, accidents, engineering difficulties, less oil than previously anticipated, etc.

There are reasons why Enquest are offering a 9% coupon on a 5 year bond and anyone not prepared to lose all their money really should stay clear of this.

hiriskpaul
Lemon Quarter
Posts: 3857
Joined: November 4th, 2016, 1:04 pm
Has thanked: 683 times
Been thanked: 1493 times

Re: New Enquest Retail Bond 9% Due 2027

#492021

Postby hiriskpaul » April 5th, 2022, 10:31 pm

I haven't seen the corporate action from HL yet either. I might message them tomorrow and ask for an update. HL are usually quite good on corporate actions, but they do need to ensure they get the wording right.

The thought of being scaled back is interesting. That had not occurred to me. I would have thought they would want to scale back the new money though as they want rid of as much of the 7% bonds as possible due to the maturity next year.

88V8
Lemon Half
Posts: 5770
Joined: November 4th, 2016, 11:22 am
Has thanked: 4101 times
Been thanked: 2561 times

Re: New Enquest Retail Bond 9% Due 2027

#492098

Postby 88V8 » April 6th, 2022, 10:09 am

hiriskpaul wrote:The thought of being scaled back is interesting. That had not occurred to me. I would have thought they would want to scale back the new money though as they want rid of as much of the 7% bonds as possible due to the maturity next year.

The offer appears to be open-ended. I see no hint of scaling back, so we should all be prepared to cough up for our full subscriptions.

V8

Laughton
Lemon Slice
Posts: 905
Joined: November 6th, 2016, 2:15 pm
Has thanked: 140 times
Been thanked: 330 times

Re: New Enquest Retail Bond 9% Due 2027

#492134

Postby Laughton » April 6th, 2022, 11:44 am

I've asked iDealing this morning about the exchange offer - will report back when I hear anything.

Laughton
Lemon Slice
Posts: 905
Joined: November 6th, 2016, 2:15 pm
Has thanked: 140 times
Been thanked: 330 times

Re: New Enquest Retail Bond 9% Due 2027

#492213

Postby Laughton » April 6th, 2022, 5:10 pm

iDealing says: -

We're waiting on more info from Crest regarding procedure, so can't be sure of deadlines yet, but the corporate action team will advise clients once we have all the information.


They also say they won't be offering the 9% bond in advance of listing.

87investor
Posts: 3
Joined: October 4th, 2017, 7:53 am
Has thanked: 8 times

Re: New Enquest Retail Bond 9% Due 2027

#492222

Postby 87investor » April 6th, 2022, 5:49 pm

[/quote]There are reasons why Enquest are offering a 9% coupon on a 5 year bond and anyone not prepared to lose all their money really should stay clear of this.[/quote]
Well said indeed
For my sins my holding is with SmartInvestor, and no corporate action notice from them yet. I need to trim my holding, Has anyone done the arithmetic of exchanging and then (at some time soonish, but when?) selling the 9%, compared with simply letting the 7% mature What is the accrued but unpaid interest worth? - it's a b... to work out from Barclay's records

sackofspuds
2 Lemon pips
Posts: 115
Joined: January 5th, 2017, 1:04 am
Has thanked: 225 times
Been thanked: 16 times

Re: New Enquest Retail Bond 9% Due 2027

#492244

Postby sackofspuds » April 6th, 2022, 6:51 pm

geoffp wrote:Nothing on the Interactive Investor website about the exchange offer yet. Has any existing holder on any platform heard anything?


II and AJ Bell both had it when I checked today.

sackofspuds
2 Lemon pips
Posts: 115
Joined: January 5th, 2017, 1:04 am
Has thanked: 225 times
Been thanked: 16 times

Re: New Enquest Retail Bond 9% Due 2027

#492249

Postby sackofspuds » April 6th, 2022, 7:04 pm

To echo what an earlier poster said about the risk, the existing ENQ1 7% bonds have moved to par value only a couple of times in the last 5 years and then only this year:

https://www.londonstockexchange.com/sto ... mpany-page

Normally you'd expect the new bonds to trade at a premium after the IPO but not sure if these will do that.

At 9% though and oil at $100 I think there's some downside protection here, depending if you think oil will hold up.

Personally I think it will.

Tempting.

Gan020
Lemon Slice
Posts: 461
Joined: March 3rd, 2019, 12:25 pm
Has thanked: 178 times
Been thanked: 246 times

Re: New Enquest Retail Bond 9% Due 2027

#492387

Postby Gan020 » April 7th, 2022, 8:41 am

hiriskpaul wrote:If someone wants to buy the new 9% bond it may be a cheaper to do it by buying the 7% and then accepting the exchange offer.

I just tried a dummy trade at HL for 10k nominal of the 7%. The price quoted was 101.99 (dirty price). Together with HL's £11.95 dealing fee that came in at £10210.95. 10k nominal on acceptance of the conversion offer will result in the payment of £150 exchange fee. In addition, accrued interest will be paid up to but excluding 27 April. I am a little uncertain what the interest accrual period is for the 7%, but the previous 2 payments were on 17/2/22 and 18/08/21, so I think this accrual period will run from something like 17 February to 17 August, 181 days, with 69 days until 27 April, which works out at about £133 of accrued per 10k nominal. Deducting the exchange fee and accrued from the cost of buying 10k nominal gives about £9928.

I am not doing this because I already have a position as big as I am comfortable with, but anyone wanting the 9% might want to consider it as an alternative to buying the 9% through their brokers.


Thanks Paul. I have done this morning through HL. The price offered this morning by HL is even better at 101.5p, which brings the cost of buying down to around £9,880.

I am very happy with this as I now don't have to run the risk of being scaled back.

Best done in a ISA or SIPP of course as otherwise tax is payable on the accrued interest and the capital loss can't be offset.

Wozzitworthit
2 Lemon pips
Posts: 124
Joined: November 5th, 2016, 4:11 pm
Has thanked: 21 times
Been thanked: 44 times

Re: New Enquest Retail Bond 9% Due 2027

#492442

Postby Wozzitworthit » April 7th, 2022, 11:31 am

I picked up some more earlier at 101.75, less than I paid a day or two ago

A poster on another board says that HL are treating the new bond as “complex” so are not promoting it

Odd seeing as how they were named on the RNS as the intial offeror

geoffp
Posts: 23
Joined: January 5th, 2022, 9:18 am
Been thanked: 7 times

Re: New Enquest Retail Bond 9% Due 2027

#492450

Postby geoffp » April 7th, 2022, 11:44 am

Although II have been offering the new bond for a couple of days they have still not made any reference to the offer of the exchange out of the old bonds. They do tend to take a day or so longer to get in touch in these types of offerings and, as the cut off date isn't until 20 April, I'm not worrying, yet!
https://www.londonstockexchange.com/new ... r/15389651 is the link to the exchange offer.

sackofspuds
2 Lemon pips
Posts: 115
Joined: January 5th, 2017, 1:04 am
Has thanked: 225 times
Been thanked: 16 times

Re: New Enquest Retail Bond 9% Due 2027

#492454

Postby sackofspuds » April 7th, 2022, 12:07 pm

Yes, the issue with buying ENQ1 and exchanging is whether your broker will then give you the opportunity to exchange.

Unless the price of the old bonds falls then it seems a bit of a risk.

airbus330
Lemon Slice
Posts: 559
Joined: December 1st, 2018, 3:55 pm
Has thanked: 364 times
Been thanked: 288 times

Re: New Enquest Retail Bond 9% Due 2027

#492488

Postby airbus330 » April 7th, 2022, 1:32 pm

Wozzitworthit wrote:I picked up some more earlier at 101.75, less than I paid a day or two ago

A poster on another board says that HL are treating the new bond as “complex” so are not promoting it

Odd seeing as how they were named on the RNS as the intial offeror


This is correct. 3 questions online declaration specifically for Bonds as complex instruments Puts HL in the clear.
Apparently there is no top target for the raise of funds. So, scaling back may be no issue on this.

Laughton
Lemon Slice
Posts: 905
Joined: November 6th, 2016, 2:15 pm
Has thanked: 140 times
Been thanked: 330 times

Re: New Enquest Retail Bond 9% Due 2027

#492530

Postby Laughton » April 7th, 2022, 3:27 pm

In response to a message I sent this morning, HL says:-

Thank you for getting in touch.

We are aware of the offer, and shall be writing out to all holders on ENQ1 shortly, confirming the terms of the offer and how they can take part.

I hope this has been of assistance. If you have any other questions, please get back to me.

sackofspuds
2 Lemon pips
Posts: 115
Joined: January 5th, 2017, 1:04 am
Has thanked: 225 times
Been thanked: 16 times

Re: New Enquest Retail Bond 9% Due 2027

#492538

Postby sackofspuds » April 7th, 2022, 3:39 pm

Interactive Investor won't let you trade ENQ1 online, you have to call.

geoffp
Posts: 23
Joined: January 5th, 2022, 9:18 am
Been thanked: 7 times

Re: New Enquest Retail Bond 9% Due 2027

#492541

Postby geoffp » April 7th, 2022, 3:54 pm

II have just notified me of the exchange offer for my Enquest bond holding.
There is a bit of an inconsistency with Interactive's "online or by telephone only" approach to retail bonds as I have managed to buy certain ones online but not others even from the same issuer (Lendinvest 22s you can do online, Lendinvest 23s you can't, for example). Anyway, I will go for the Enquest exchange and keep a very decent payment going for a few more years, hopefully.

Laughton
Lemon Slice
Posts: 905
Joined: November 6th, 2016, 2:15 pm
Has thanked: 140 times
Been thanked: 330 times

Re: New Enquest Retail Bond 9% Due 2027

#492576

Postby Laughton » April 7th, 2022, 5:47 pm

Exchange Offer now available on iDealing

hiriskpaul
Lemon Quarter
Posts: 3857
Joined: November 4th, 2016, 1:04 pm
Has thanked: 683 times
Been thanked: 1493 times

Re: New Enquest Retail Bond 9% Due 2027

#492647

Postby hiriskpaul » April 7th, 2022, 10:16 pm

Just checked the original bond prospectus and found that the interest payment dates are 15th Feb and 15th August each year, not the 17th as per my original estimate.

Probably also worth mentioning that the existing bond is callable, so any holdouts from the exchange offer may get redeemed earlier than the maturity date next year.

88V8
Lemon Half
Posts: 5770
Joined: November 4th, 2016, 11:22 am
Has thanked: 4101 times
Been thanked: 2561 times

Re: New Enquest Retail Bond 9% Due 2027

#492717

Postby 88V8 » April 8th, 2022, 9:53 am

sackofspuds wrote:Interactive Investor won't let you trade ENQ1 online, you have to call.

They seem capricious in deciding what they will and will not trade online.
Can't trade SKIP, STAC for example, or even NWBD which seems quite bonkers.

But at least online we can switch our 7s to the new 9s, and I have.
Regards scaling back, ii's corp actions mentions the possibility. I had the distinct impression from the shortened offer precis that it was open-ended, perhaps there was something in the 250+ pager that I haven't read.... :oops:

As I mentioned before, I expect the 9s to trade around 115%. Any bets? :)

V8


Return to “Gilts and Bonds”

Who is online

Users browsing this forum: No registered users and 12 guests