Thera Trust
Thera is a leading UK charity that provides care, support and services for people with a learning disability. This year, the charity is celebrating 25 years of supporting people with a learning disability to live the life they choose as equal and valued citizens in their local communities.
Many of the people that Thera supports have complex needs or have previously lived in institutional settings for a long time. The charity supports everyone in a person centred way so that they can live an ordinary life.
Thera’s vision is that people with a learning disability can be leaders in society, which is why Thera has 13 paid director roles for people who have lived experience of learning disability, as well as 14 voluntary director roles. Their roles ensure that Thera remains focused on providing high quality support which meets people’s needs.
The charity supports over 3,200 people, works in around 50 local authority areas across England, Scotland and Wales and for the year ending 31 March 2023 had an income of £81 million.
The bond offer
This is the fourth time that we’ve partnered with Thera Trust to raise capital through a bond.
Thera’s strategy is to continue its charitable impact by providing support to more people with a learning disability.
Thera is seeking to raise £5 million to support the charity’s continued growth, enabling it to provide more care and housing for people with a learning disability. Some of the proceeds will also be used to repay the charity’s 2018 bond which is due for repayment in March 2024.
IFISA eligible
Thera Trust bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). 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 Thera Trust 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
Term
5.5 years, repayment due on 31 March 2029
Interest
7.25% gross per year. Payable in arrears on 31 March each year (paid net of UK basic rate tax unless help in an IFISA) with the first payment on 31 March 2025. Payment of interest and repayment of capital are not
guaranteed.
Early repayment
Thera Trust has the right to repay the bonds without penalty from 31 March 2026.
Unsecured
The bonds are unsecured, which means that bondholders will rank equally with Thera Trust’s other unsecured creditors and behind secured and preferential creditors on an insolvency.
Transferability
Bonds are transferable and may be sold on a matched bargain basis, however it may be difficult to sell your bonds and you may not get back the full amount invested. Investors
should be prepared to hold the bonds for their full five and a half-year term.
Covenant
A gearing covenant, which place a limit on the Group’s total borrowings. A breach of this covenant triggers a higher rate of interest for the period of the breach.
Minimum raise
£1 million. If the minimum raise isn't reached, then investors’ monies will be returned.
Timetable
First close on 30 November 2023 (subject to the £1,000,000 minimum having been reached), interim close on 29 December 2023 and the final close on 19th January 2024, unless the £5,000,000 has been reached earlier or the offer is extended. Bonds are issued 14 days after close.
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.
