In November 2015, CommuniGator aimed to raise £500,000 via UK Bond Network to help facilitate the next stage of their growth plans.
The two-week auction generated a total of £680,000 in bids, with investors bidding competitively at rates of between 9% and 12% to take part of the Company's £500,000 requirement. Ultimately, the bids at the top of the interest rate range were knocked out, bringing the clearing rate down to 11.75%.
Established in 2005, the CommuniGator Group provides a wide range of marketing automation tools to SMEs through a scalable online platform.
I am sure that there are many, many more privately held businesses out there that would benefit from the fund raising method and style of UK Bond Network.KEVIN BYRNE, EXECUTIVE DIRECTOR, COMMUNIGATOR
Key auction statistics & Headline terms
Average bid size
|Coupon||11.75% gross per annum|
|Repayment||36 months, amortising monthly|
|Security||All-assets debenture, Guarantees & Fixed Charges|
|Underwriting||This bond was underwritten for the full requirement of £500,000|
Kevin Byrne, Executive Director at CommuniGator, spoke about his experience raising the funding:
“We are a privately owned business in a dynamically growing market; there are plenty of opportunities to grow our business but as always, costs will precede income growth. We had no debt other than a loan from one of the directors/shareholders and not even a bank overdraft facility.
“We looked at a number of options but preferred debt rather than equity funding and, through a previous business relationship, we got in touch with UK Bond Network to see if they would be interested in a discussion. They were, and early on in the process, it became obvious that there was a good match. A minor but important component for us was the lack of requirement of personal guarantees - the Group has sufficient assets to act as security for the funds raised. I wish Banks would act more like this!”