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The ARM Bond is a capital growth investment that does not pay income during the term of the Bond. Instead the bonds are bought at a deep discount to their face value, which is the amount the Bond is worth when it “matures” or comes due. The Bond is backed by a Cash Entitlement Account, the objective of which is to deliver a return through prudent investment in a select and diversified portfolio of American life insurance policies (“SLS”). The Capital Growth Bond has two alternative investment terms: • 5 years: returning 7.5% compound per annum or 43.56% on maturity equivalent to £143.56 for every £100 invested, or Catalyst has established itself as a provider of innovative investment solutions focussed on corporate finance for small cap, high growth unlisted companies and private client stock broking. Catalyst has the ability to develop unique and innovative investment solutions and has developed the C3 corporate funding structure (see Notes to Editors) which includes the ARM bond. The head of corporate finance at Catalyst, Andrew Wilkins, said: “The strength of demand since the summer 2006 launch of the ARM Bond and the interest shown in it by pension and life funds has encouraged us to seek a listing for the Bond. We are currently planning further tranches and expect to make an announcement to this effect in the near future” The ARM Bond has been structured to repay both capital and yield at maturity, however, capital return is not guaranteed. The value of investments may fall as well as rise and you may not realise the amount originally invested. Prospective investors are advised to seek independent professional advice before considering an investment of this type and should read the risks, as well as the terms and conditions contained in the Information Memorandum.
For further information, please call: Andrew Wilkins, Catalyst Investment Group 020 7929 5090 Notes to Editors 1. Catalyst Investment Group is a London based investment specialist focused on corporate finance for small cap, high growth unlisted companies and private client stockbroking. Catalyst has the ability to develop unique and innovative investment solutions and has developed the C3 Corporate Funding Structure which includes the C3 Bond and the ARM Bond (see below), which provides companies with the funds they require and investors with a higher level of investment protection than ordinary corporate bonds. Catalyst has a pipeline of C3 Funding Structure clients which currently include:
2. The Catalyst C3 Corporate Funding Structure is a pre-IPO funding structure that works as follows:
3. C3 Bond is the core of the Catalyst C3 Funding Structure and is a corporate, covered, convertible Bond developed by Catalyst that offers the upside of investing in high growth companies whilst mitigating the potential risks. These bonds are issued by an entity to raise capital as a form of debt finance (corporate); part of the capital raised is invested separately to enable the full principal to be returned independent of the company’s performance (covered); finally there is an option to convert the Bond into shares in the company, allowing investors to benefit from an uplift in value of the Company (convertible).
4. The ARM Bond is a Capital Growth Bond issued by ARM Asset Backed Securities S.A (the “issuer”). The Bond is a deep discounted zero coupon bond with maturities of either 5 or 7 years, offering growth of up to 110.9% (for the 7 year option). This growth bond does not pay an income during the term of the bond. Instead, the bonds are purchased at a deep discount to face value which is the amount the bond is worth when it “matures” or comes due. The bond is backed by Cash Entitlement Accounts, with the objective being to deliver a return through prudent investment in a select and diversified portfolio of US Senior Life Settlement Policies. These portfolios should provide revenue and opportunity for capital growth which will enable the issuer to meet maturity value on the bonds.
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