Companies in the news: Helical Bar

Property company Helical Bar has issued a bond with a tempting 6% yield. Should you buy it? Phil Oakley investigates.

Property companies have been one of the major issuers of retail bonds. Last week, Helical Bar (LSE: HLCL) tempted private investors with a seven year, 6% bond, which is due to mature in 2020. Should you buy it? Start by asking three key questions. Why does the company need the money? Can it afford to pay me the 6% interest? Can it pay me back at the end of seven years?

Helical has £286m of borrowings and a lot of that has to be paid back within the next three years. Restructuring some of its borrowings is the main reason for issuing the bond.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.