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Hegel Angel
Posted - 2011.02.14 01:55:00 - [1]
 

62B Fully Collateralized 6 Month Bond


Rate = 3.5% per month, payable 1st of each month
February rate will be pro-rated payable March 1st from release date.

Collateral = Absolution BPO, Ogre II BPO, Hobgoblin II BPO


Objective
To launch a 62B ISK Bond (with collateral), released through a holding corp. 62,000shares will be sold for 1M each, paying a monthly dividend on 1st of each month with a rate of 3.5%.
After 6 months loan will be paid out via large dividend.


Purpose
We require the Bond to expand our capabilities and fund future operations. Details will remain vague, but that is purpose of collateral to cover business concerns.


Background
I am an ALT for a CEO of an industrial corp within our alliance. Our alliance has completed several industrial bonds and loans within the alliance and completed some collateralized loans outside of the alliance. The previous external bonds were arranged via Cosmoray for 32B and 78B respectively (with T2 BPO collateral), and at rates of 5.25 and 4.75%.
Cosmoray has completed business with our corp and alliance for the past 3 years. Previously he provided our alliance all our Orca’s, Hulk’s and a high quantity of T1 Battleships monthly.


Why a Bond?
We had tried to negotiate a loan with Cosmoray for the whole loan, but his rates started at 4.75% and we wanted to pay a lower market rate with good collateral. Cosmoray advised to launch via MD.


Collateral
On Thursday we contracted the 3 above BPO’s to Cosmoray in a high sec station. The BPO’s are locked down in a holding corp so we can still continue to manufacture the BPO’s. We have paid Cosmoray’s holding & lockdown fee’s.


Cosmoray said he will confirm details for previous loans and the collateral.

Questions
I will answer any questions best I can, but will do so (after 6pm CT due to work) in week.

Reservations
Post all reservations in this thread. First come, first served.

Companion Qube
Minmatar
Electron Conservation Inc
SRS.
Posted - 2011.02.14 01:59:00 - [2]
 

Pending discussion with Cosmoray I'm interested in funding the entirety of your bond.

Kalrand
GoonWaffe
Goonswarm Federation
Posted - 2011.02.14 02:05:00 - [3]
 

Originally by: Companion Qube
Pending discussion with Cosmoray I'm interested in funding the entirety of your bond.

Shocked

Companion Qube
Minmatar
Electron Conservation Inc
SRS.
Posted - 2011.02.14 02:06:00 - [4]
 

Originally by: Kalrand
Originally by: Companion Qube
Pending discussion with Cosmoray I'm interested in funding the entirety of your bond.

Shocked

Quiet you.

trance atlas
Posted - 2011.02.14 02:27:00 - [5]
 

reserving 2 bil before dude takes it all .


buy back policy before 6 months?

Hegel Angel
Posted - 2011.02.14 02:35:00 - [6]
 

Per buyback:

The bond is being released as shares so they can be sold on the market. Otherwise bond will only payout principal at 6 month date.

Prefer not to have 1 person as sole shareholder, but I guess its your choice?


Kalrand
GoonWaffe
Goonswarm Federation
Posted - 2011.02.14 02:36:00 - [7]
 

Originally by: Hegel Angel
Per buyback:

The bond is being released as shares so they can be sold on the market. Otherwise bond will only payout principal at 6 month date.

Prefer not to have 1 person as sole shareholder, but I guess its your choice?




If its one guy taking down the whole bond, don't bother with the shares.

cosmoray
Perkone
Posted - 2011.02.14 02:44:00 - [8]
 

Quick post to make a few points:

1. The corp represented here did indeed complete two loans with me for the amounts listed. Absolution always seemed to be one of the BPO's of choice along with a mixture of others.

2. I did receive and set up the BPO's for use in high sec so 5 people from their corp could use. The BPO's were setup and in factory slots on Saturday a.m

3. I am unable to currently do anything else in game at present as I am in South America on business for next two weeks (arrived today) and will not have any access to game client. Only got internet access.

4. Up to investors on security and trust issues on me holding approx 100B (conservative) in collateral for this bond. I have all the shares and am CEO (one of my ALT's) of the holding corp with BPO's in.

5. If trust is OK, the bond can start without me.

Liberty Eternal
Posted - 2011.02.14 03:38:00 - [9]
 

Originally by: cosmoray
holding approx 100B (conservative) in collateral for this bond.


Will this 100 billion be in addition to your other public liabilities? If so, what is the full figure for all your liabilities combined?

Also, are you planning to undergo an audit for this offering? If not, please explain your reasons.

Kalrand
GoonWaffe
Goonswarm Federation
Posted - 2011.02.14 03:46:00 - [10]
 

Originally by: Liberty Eternal
Originally by: cosmoray
holding approx 100B (conservative) in collateral for this bond.


Will this 100 billion be in addition to your other public liabilities? If so, what is the full figure for all your liabilities combined?

Also, are you planning to undergo an audit for this offering? If not, please explain your reasons.


I like where this thread is going.

Companion Qube
Minmatar
Electron Conservation Inc
SRS.
Posted - 2011.02.14 04:46:00 - [11]
 

This thread has the potential to be comedy gold, or wallet gold - only time will tell.

Ras Blumin
A Cross The Universe
Posted - 2011.02.14 09:09:00 - [12]
 

10b if QC doesn't go through with it.

cosmoray
Perkone
Posted - 2011.02.14 14:29:00 - [13]
 

Total liabilities are 100 approx in debt.
This collateral is worth over the 62b value (well over).

My operation won't be audited but I am happy to add peeps to the holding Corp as I have done previously. I still can't do anything in game though till March due to travels.

Note: using this forum via iPhone is really hard!

Corcyrus Endymion
Caldari
Elder Tribes
Posted - 2011.02.14 16:06:00 - [14]
 

Originally by: Liberty Eternal
Originally by: cosmoray
holding approx 100B (conservative) in collateral for this bond.


Will this 100 billion be in addition to your other public liabilities? If so, what is the full figure for all your liabilities combined?

Also, are you planning to undergo an audit for this offering? If not, please explain your reasons.


If I would ever invest, this would be as good as any opportunity. As far as trust goes, I think I would trust Cosmo with a couple billion even without an audit.

Lord Arbalest
Northstar Cabal
Important Internet Spaceship League
Posted - 2011.02.14 21:45:00 - [15]
 

I am also willing to invest the entire amount (if anyone drops out) depending on security arrangements with Cosmoray (and I understand he won't be able to make those for a little while.)

cosmoray
Perkone
Posted - 2011.02.14 23:05:00 - [16]
 

Originally by: Lord Arbalest
I am also willing to invest the entire amount (if anyone drops out) depending on security arrangements with Cosmoray (and I understand he won't be able to make those for a little while.)


Not sure what you guys want me to do?

At present I have 100% control of collateral. If people want to join the holding corp as directors then I can't do that until March 1st/2nd depending when I get back home.

I have no idea what Hegel's time frame for getting the cash is, so you will need to come up with a plan with her. Partial funding, etc.

I would suggest taking investments from people who wish to invest now, and if it doesn't fill make further arrangements when I get back.

Companion Qube
Minmatar
Electron Conservation Inc
SRS.
Posted - 2011.02.15 01:36:00 - [17]
 

Originally by: cosmoray
Originally by: Lord Arbalest
I am also willing to invest the entire amount (if anyone drops out) depending on security arrangements with Cosmoray (and I understand he won't be able to make those for a little while.)


Not sure what you guys want me to do?

At present I have 100% control of collateral. If people want to join the holding corp as directors then I can't do that until March 1st/2nd depending when I get back home.

I have no idea what Hegel's time frame for getting the cash is, so you will need to come up with a plan with her. Partial funding, etc.

I would suggest taking investments from people who wish to invest now, and if it doesn't fill make further arrangements when I get back.

I'm going to bow out in this case. I was looking for a 3 way director share split in the holding corp, you, me and a 3rd party to keep both of us honest. I'm still interested but until those terms are met I won't be investing. No offense meant cosmo- it's not you I don't trust, it's everyone.

Breaker77
Gallente
Reclamation Industries
Posted - 2011.02.15 02:04:00 - [18]
 

Edited by: Breaker77 on 15/02/2011 02:15:05
Originally by: Companion Qube

I'm going to bow out in this case. I was looking for a 3 way director share split in the holding corp, you, me and a 3rd party to keep both of us honest. I'm still interested but until those terms are met I won't be investing. No offense meant cosmo- it's not you I don't trust, it's everyone.


So you are looking for You, Cosmo, and someone else to split it 3 ways?

Well hell, I'll toss my name in there depending on how everyone else agrees on it. I have an alt I can shift around if needed to be in that position.

Again, it's up to you guys to decide on that, but I'm available if needed for no charge at that! It's not that hard to have a character in corp and check up on it once a day.

edit: really director isn't really needed. All thats needed is someone in the corp with 1/3rd the shares. Has to be in the corp in the event of CEO takeover needed, but with Cosmo I doubt that would be unlikely.




Companion Qube
Minmatar
Electron Conservation Inc
SRS.
Posted - 2011.02.15 02:19:00 - [19]
 

Edited by: Companion Qube on 15/02/2011 02:19:46
Originally by: Breaker77
So you are looking for You, Cosmo, and someone else to split it 3 ways?

No no - I was looking to take the entire investment and split cosmo's holding corp shares 3 ways to keep any 1 person from having the ability to unlock the collateral. I had someone in mind to play the 3rd party, but at the moment that's a moot point since cosmo is unavailable to set any of this up for at least six weeks.

If you want to dive into this go ahead, I'm going to hold off on pulling the trigger for the moment.

Breaker77
Gallente
Reclamation Industries
Posted - 2011.02.15 02:21:00 - [20]
 

Originally by: Companion Qube
Edited by: Companion Qube on 15/02/2011 02:19:46
Originally by: Breaker77
So you are looking for You, Cosmo, and someone else to split it 3 ways?

No no - I was looking to take the entire investment and split cosmo's holding corp shares 3 ways to keep any 1 person from having the ability to unlock the collateral. I had someone in mind to play the 3rd party, but at the moment that's a moot point since cosmo is unavailable to set any of this up for at least six weeks.

If you want to dive into this go ahead, I'm going to hold off on pulling the trigger for the moment.


Oh no. I knew you meant someone to help secure it, not invest. I wish I had 62 bil to invest Laughing However, me offer still stands on a neutral 3rd party to secure it.


Hegel Angel
Posted - 2011.02.15 23:11:00 - [21]
 

Sorry haven't been on for 2 days, Valentine's trip.

This Bond seems to be a bit stuck with people offering all the money depending on Cosmoray's return which won't be for 2 weeks.

We require 14B in financing this week, we can certainly wait on the rest till March but BPC's need purchasing to go into production.

For those who are interested immediately please post reservations, up to the 14B limit unless more takers. If other people need to wait for Cosmoray we can make arrangements on the other 48B later.

Ras Blumin
A Cross The Universe
Posted - 2011.02.16 04:49:00 - [22]
 

I'm still interested in 10b of shares.

Who can unlock the BPO's? Are all shares in Cosmoray's hands? Just trying to see the risks here.

cosmoray
Perkone
Posted - 2011.02.16 13:42:00 - [23]
 

The bpo's are in my hands, and are locked down in MY holding Corp. I own 100% of these shares.

The shares that Hegel is offering are from HER holding that are just acting as a method of paying interest every month.
The whole time this bond is active I hold the collateral. If there is a default I sell the bpo's and buy back the shares at 1M ISK per share.

Lost Hamster
Hamster Holding Corp
Posted - 2011.02.16 14:02:00 - [24]
 

reserving 5b

Hegel Angel
Posted - 2011.02.18 04:27:00 - [25]
 

Reservations so far:

Trance atlas 2B
Ras Blumin 10B
Lost Hamster 5B

Total 17B

Can people confirm that they still want to invest this amount. I know some other investors want to wait for Cosmoray's return before funding the rest.

If the above people want to invest we do need money in next 4-5 days so we can start production.
Let me know your intentions.

I know the timing with Cosmoray is a bit screwed, as he has all the collateral but he is away and can't make any changes.

Ras Blumin
A Cross The Universe
Posted - 2011.02.18 07:42:00 - [26]
 

Edited by: Ras Blumin on 18/02/2011 07:53:19
Confirming.

What happens if you do not get the rest of the 62b?

Originally by: cosmoray
If there is a default I sell the bpo's and buy back the shares at 1M ISK per share.

What are the BPOs worth approximately? Ie. going by this, you will get/lose the difference between the BPOs worth and 62b, so what do you expect that to be? I guess this isn't really relevant to me, as long as you're willing to pay 1m per share no matter what you can sell the BPOs for.

edit: So you conservatively value the BPOs at 100b? Let's hope for you they default, I guess :)

rig selller
Gallente
Ship Mod Unit Technicians
Posted - 2011.02.18 08:44:00 - [27]
 

i will go in for 3 billion please.

Lost Hamster
Hamster Holding Corp
Posted - 2011.02.18 10:21:00 - [28]
 

Edited by: Lost Hamster on 18/02/2011 10:21:21
Originally by: Hegel Angel

Can people confirm that they still want to invest this amount.


Confirming my 5b.

Not sure why we would need to wait any more for Cosmoray.

Originally by: cosmoray
The bpo's are in my hands, and are locked down in MY holding Corp. I own 100% of these shares.


He have the BPO's locked in his corporation. So the collateral is safe.
I don't see why the whole investment could not start.

Originally by: Hegel Angel

I know the timing with Cosmoray is a bit screwed, as he has all the collateral but he is away and can't make any changes.


I don't think any more changes is required. Cosmoray is OK for holding the collateral.

Khanid Voltar
Night's Dawn Investment Fund
Posted - 2011.02.22 21:58:00 - [29]
 

Everything looks to be in order, please put me down for 10B.

Liberty Eternal
Posted - 2011.02.23 00:20:00 - [30]
 

Can we at least find out who Hegel Angel's main character is? At this stage, the only public information available is that an alt created on February 12th this year is asking for 62 bil cash and that the loan is effectively being taken out on cosmoray's creditworthiness.

I'm sure that all concerned are trustworthy individuals, however this represents a nearly 100% increase in exposure for Cosmoray. Are there no steps that can be taken to increase the security of this offering? The degree of commitment shown to tangible investor security at this stage is nearly zero.


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