The dedicated Texmoore Restructuring and Recovery team consists of highly skilled and experienced property consultants who can deliver innovative and strategic profit generating solutions to the complex challenges and opportunities that insolvency and recovery can present. Our multidisciplinary team is positioned perfectly to take advantage of available projects which are on the verge of failure due to solvency and cash liquidity issues. Our funding model generally enables us to step in at short notice if there are part constructed projects that tick the right boxes for us. We offer a strategy that saves the development from collapse and is lucrative to our funding stakeholders.
We lead the instruction from day one, remaining hands-on throughout the project life cycle to maximise recovery and implement successful strategies.
Our R&R department is led by an experienced global property adviser and asset manager with 40 years’ experience in complex problem solving and project management tasks. These involve multi-disciplined teams in challenging environments and emerging markets.
Turbulent economic cycles and political realities are continuing to highlight the importance of optimising value through cost effective and proactive workout strategies.
The Texmoore Restructuring and Recovery team is perfectly positioned to identify potential risks and provide workout guidance to the sales department and support project managers and contractors throughout every stage of the cycle.
Utilising the Texmoore proprietary property databases and research department, the team has access to up-to-the-minute market intelligence and insight. We are able to conduct high level risk analysis at very short notice and almost immediately reach out to potential funders. This enables the identification of potential project risks early and allow the swift, consensual mitigation of that risk to yield positive expected return. The team supports and advises on a proactive and consensual strategy by working with all departments and lenders to maximise the probability of success and minimise risks involved.
The Restructuring and Recovery team is placed at the heart of the Texmoore departmental network and has contacts throughout the industry. It has access to market leading research, market making agents and a vast array of renowned real estate consultancy services.
The team has an unrivalled depth of experience in managing complex funding communications alongside lenders, special service providers, potentially insolvency practitioners, solicitors, shareholders and private individuals. This enables our real estate professionals to provide on-going, transparent, effective advice, strategy and management throughout the life cycle of the development.
We provide proactive, bespoke solutions to many types of commercial development which have run into financial or technical difficulty. Our teams are based across the UK from Scotland to the South Coast offering local expertise that can be on hand at short notice. Our partner-led teams of surveyors, accountants and facilities managers provide a complete range of services within Texmoore and they liaise daily with our analysts, investor relations teams and project managers, reporting to senior executives at main board level.
Our real estate professionals are specialists in residential projects, especially HMO projects which generally require more complex project management, and cash funding solutions. The moral responsibility of assisting the completion of developments that will serve the most disadvantaged people in society is not taken lightly. We generate solid plans for success, with a focus on maintaining high levels of quality at manageable costs so that Texmoore yields strong returns for the company and its funders.
What is a Convertible Loan Note?
Customarily, they are fixed rate loan notes issued by a company, the terms of which allow the holders to convert them into ordinary shares of the company at a prescribed conversion price and during a set period.
So convertible loan notes give investors more than a traditional loan security as they combine two separate financial instruments; a fixed rate loan and an equity call option.
This combination of features provides investors with certain distinct advantages over a similar investment in plain loans or the ordinary shares of the company. In very general terms, convertible loan notes are capable of offering investors equity upside potential in the ordinary shares of the relevant company as a result of the equity call option and, at the same time, capped downside risk as a result of the fixed rate loan notes’ coupon and ultimate return of principal on the final maturity date. This equity upside potential and capped downside risk is a unique and innovative feature that we have developed to meet the return appetite and low risk profile of our clients.
Benefits of Investing in convertible Loan Notes
- Irrespective of the performance of the Texmoore ordinary shares, the loan notes continue to provide a fixed rate of income for investors through the interest, and a protected return of principal on their final maturity date.
- If Texmoore were to become insolvent or be liquidated, an investment in convertible loan notes would have even rank with the company’s unsecured debt and rank ahead of an investment in the ordinary shares of the company in insolvency proceedings.
- The investor has, as mentioned above, upside participation in the performance of the ordinary shares of Texmoore, as its option to convert its holding of the bonds into ordinary shares is set at a fixed price, and the holder of the bonds therefore benefits from any increase in the market value of the ordinary shares above that fixed conversion price.
Protections for Investors in Loan Notes in Texmoore Property?
Traditionally, the convertible loan note market was a senior, unsecured bond market in respect of the fundamental credit protections expected by investors. This might, at first, sound counter-intuitive, given many of the companies which issue convertible loan notes are “cross-over credits” or non-investment grade companies.
It was, however, a combination of the embedded equity call option and the types of investors in this asset class (and, in particular, hedge funds which hedge their credit exposure) which mitigates any related concerns as to the nature of the loan notes’ limited credit protections.
Texmoore Ltd offers protections of an FCA regulated security trustee that supervises the company and monitors the borrowing to ensure it is at the safest levels. They also have the power to step in and take control of all assets if they were ever concerned about the ability of the company to repay its debts. This is a considerable power and demonstrates the confidence of Texmoore in its own business model. It offers stakeholders the strongest safeguard reasonably possible and should offer investors great peace of mind.
Texmoore also opens a regulated escrow account for all of its investors form one of the largest escrow payment providers in the financial industry. This enables you to feel totally confident in the destination of your funds. When it comes to receiving payments, Texmoore then pay you directly from this escrow.