Before you can buy bonds from the Dons Trust, it is important that you acknowledge the risks associated with an application for a Plough Lane Bond
- Loss of Capital
If the financial performance of the club deteriorates or the costs of developing the stadium increase substantially, it is significantly more likely that there will not be sufficient funds available to repay the principal of your bond or to make interest payments. You should not invest more money than you can afford to lose without altering your standard of living.
- Availability of funds
Principal and interest will only be paid on bonds from funds repaid to the Trust by AFCW PLC or a subsidiary of AFCW PLC pursuant to the terms of an onward loan to AFCW PLC or a subsidiary of AFCW PLC. The onward loan will only be repayable from funds available to AFCW PLC and its subsidiaries, taking account of budgeted expenditure and contractual commitments. Repayment of principal and interest under the bonds will therefore be subject to AFCW PLC and its subsidiaries having funds available.
- Early repayment
Your loan is repayable early at any time prior to maturity at the discretion of the Trust. The Trust will only be able to repay your loan early if the onward loan to AFCW PLC (or any if its subsidiaries) is repaid. Your loan may be repaid early if early repayment of the onward loan (or a proportion of it) is a condition to AFCW PLC or any of its subsidiaries obtaining further funding.
Your bond is non-transferable. This means you will not be able to reduce your financial exposure other than from receipt of payments from the Trust in accordance with the terms of the bond.
- Subordination of your bond
Your investment is unsecured. The club is likely to require further secured debt funding in order to complete the development of the stadium. This means that you would only receive payments of principal or interest if certain tests were met to satisfy the secured funder that such payments would not affect the ability of the club to meet its commitments to the secured funder. If the secured funder is not paid in accordance with the terms of its loan, the secured funder could enforce its security resulting in the sale of assets from the club and ultimately its insolvency. As an unsecured creditor of the Trust, it is highly unlikely you would receive any further payment in respect of your investment.
- Failure to execute construction contract
If AFCW PLC or a member of its group does not execute a construction contract for the stadium at Plough Lane for any reason then the funds will not be loaned to AFCW PLC and will be returned to investors without interest.
- Failure to fully fund construction
If AFCW PLC or a member of its group does not secure the balance of the funds for the stadium at Plough Lane for any reason then it is significantly more likely that the stadium will not be constructed to anticipated specifications and there will be insufficient funds available to either repay the principal of your bond or make interest payments.
Visitors to this website are encouraged to seek individual advice from their personal, financial, legal, tax and other appropriate advisers before making any investment or financial decisions or purchasing any financial, securities or investment related product.