Loan Note Fundraising Toolkit

A toolkit of template and sample legal documents, for raising funds by issuing loan notes.

LCN Legal’s loan note toolkit has been created to help raise funds for property-related projects, without falling foul of UK financial services regulations.

Who this toolkit is suitable for

This toolkit may be suitable for you if:

  • You want to raise funds for a single or multiple property-related projects.
  • You want to raise the funds by borrowing money at a specified rate of interest (fixed or floating), rather than offering equity or a share of the profits of the venture.
  • You already have access to potential investors who are ‘exempt investors’ for the purposes of UK financial services legislation (e.g., certified High Net Worth Investors, Sophisticated Investors, etc.).
  • You want to ensure that you are legally compliant, and that you do not commit any criminal offences relating to financial promotions and the operation of structures such as collective investment schemes or alternative investment funds.
  • You want to minimise legal costs by following a tried-and-tested approach.

A typical scenario

The LCN Legal loan note fundraising toolkit may be used for the following scenario:

  • A UK company limited by shares will be incorporated as a special purpose vehicle (SPV) to acquire UK property. The shares in the SPV will be held by a single shareholder.
  • The property will be held as an investment or for development and sale.
  • The SPV will raise finance by offering loan notes to UK exempt investors (e.g., certified HNWIs, sophisticated investors, etc.). The loan notes will be non-transferable.
  • Prospective investors will be properly categorised before any investment opportunity is presented to them.
  • The investors will receive a fixed return on their investment (and there will be no profit share element in their return).
  • The loan notes will be secured by a first or second charge over the relevant property.
  • Property-related services will be provided to the SPV by an existing property advisory company.

What does the loan note fundraising toolkit include?

The toolkit includes the following template and sample documents:

  • Structure chart
  • List of legal documents and actions
  • Skeleton information memorandum
  • Loan note instrument
  • Application form for investors
  • Property services agreement
  • Security trust deed
  • Sample loan note register
  • Executive summary guidance note on how to operate the structure

Note: The documents are provided in English in Microsoft Word format, and are governed by English law.

Telephone access to a senior lawyer to discuss your questions

Following purchase of your toolkit, you will receive a certificate entitling you to a free telephone call of up to one hour with a qualified lawyer, to discuss any questions you have on the toolkit and your particular circumstances.

How to order

To order your toolkit, email us at info@lcnlegal.com or order online below.

Buy Online | £1,950.00+VAT

Call on us for more support if you need it

Our specialists are available to give you additional support as required, at prices to be agreed. This includes:

  • Tailoring the template and sample documents to suit your particular needs
  • Assistance with the negotiation of the arrangements with investors
  • Help with the structuring of high value transactions, to as to maximise the chances of success
  • Ongoing legal advice and support
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