Paces Sheffield
Paces Sheffield (“Paces”) is a specialist centre, school and charity for children and adults with Cerebral Palsy and other neurological motor disorders. Paces aims to positively change the lives of those it supports and focuses on ability, not disability.
The charity delivers Conductive Education: a holistic package of educational support that aims to help children and adults obtain the greatest level of independence through a range of supportive measures.
With over 20 years’ experience of supporting people using the techniques of Conductive Education, Paces has directly supported over 350 children and adults with a range of complex needs. The charity is based in Sheffield and supports individuals and families of all ages. As it is the only provider of Conductive Education between Nottingham and Newcastle, this includes those living across the Midlands, Yorkshire and even further afield.
The bond offer
The capital raised from this bond offer will provide the funds to deliver a new home for Paces School and resources to support more children who need their services.
Paces is one of the country’s leading centres for Conductive Education and has ambitious growth plans to fulfil the demand for its services. For several years the charity has been exploring options to relocate its school due to constraints on its current site.
Paces has found the ideal opportunity, only a mile away from its current premises, which will allow the charity to increase its pupil numbers by over 75%. The new premises need refurbishing and fitting out the building to provide the facilities needed for the pupils.
Choose your interest rate
Although the standard interest rate is 6%, you will have the option to select an interest rate of 0% or 3%, should you wish to gift part or all of the interest to Paces, a registered charity.
IFISA eligible
Paces bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.
To invest in Paces bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.
Transferring an existing ISA
If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first before you make an application for bonds.
Key terms
Issuer
Paces Sheffield (Paces)
Target amount
£1.5 million
Term
8 years, repayment due on 31 August 2029
Interest
6% gross per year payable 31 August each year (paid net of UK basic rate tax unless held in an IFISA) with the first payment on 31 August 2022. Payment of interest and repayment of capital are not guaranteed.
Gifting of interest
Although the standard interest rate is 6%, investors have the option to select a 0% or 3% interest rate should they wish to gift part or all of the interest to Paces.
Early repayment
Paces has the right to repay the bonds in part or in full annually with effect from 31 August 2024.
Unsecured
The bonds are unsecured so bondholders will rank equally with Paces’ other unsecured creditors and behind secured and preferential creditors on insolvency.
Transferability
Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full 8-year term.
Borrowing covenant
Paces can only take on additional debt if over 50% of the principal is repaid beyond the 31 August 2029.
Minimum raise
£1 million. If less than £1 million is raised, monies will be returned to investors with no accrued interest.
Timetable
Closes on 13 August 2021, unless fully subscribed earlier or offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date.
Capital at risk warning
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest.
