Invest in a Bond-Linked Security linked to Marks and Spencer PLC, returning 6.00% p.a.
The information below is a summary of this investment opportunity. Investors must obtain and read the ‘Product Disclosure Document’ for this security dated 11 August 2022 (PDS), along with the ‘C2 Accumulator – Deferred Purchase Agreement – Master PDS’ dated 18 March 2022 (Master PDS) before investing in this opportunity.
Overview
Marks and Spencer PLC (Marks and Spencer) is a major British multinational retailer based in London, England. It specialises in selling clothing for men, women and children, beauty products, home products and food products. It is listed on the London Stock Exchange (LSE) and is a constituent of the FTSE 100 Index.
This security a ‘Bond-Linked Security issued by an Australian Financial Services Licensee, and is not a corporate bond issued by Marks and Spencer.
The security provides Investors with the opportunity to make an AUD investment, yet gain exposure to returns based on the credit risk of Marks and Spencer (an opportunity usually available only to investors wishing to make a market-sized investment (USD 500,000) denominated in USD).
By investing in this security, investors will receive regular income in the form of coupons and 100% of the face value of your investment on maturity – all in AUD. All currency exposure has been hedged by the Issuer, and will apply except in certain situations described in the ‘Risks’ section below.
Note Disclosure Documents
- C2 Accumulator – Deferred Purchase Agreement – Master PDS (March 2022);
- C2 Bond Linked Securities Series 6 – Marks and Spencer PLC PDS
Marketing Documentation
Key Terms
| Issuer | C2 Specialist Investment Pty Ltd ACN 622 433 032 |
|---|---|
| Custodian | C2 Nominees Pty Ltd (ACN 624 366 981 |
| Arranger | C2 Financial Services Pty Ltd ACN 621 428 635 AFSL 502171 |
| Coupon | 6.00%pa (fixed), paid semi-annually |
| Maturity Date | 21 May 2026 |
| Issue Price | $100 |
| Minimum Investment | $10,000 |
| ABE Code | C2MF060026 |
Risks
This is an overview of the main risks associated with this investment. Further (and more complete) details of the main risks associated with this security are set out in the PDS.
- Capital invested is at risk – There is no capital protection or guarantee by the Australian government or any other party (including the Issuer). Therefore, if the Issuer or Marks and Spencer default, you may not receive the amount you have invested on maturity.
- Credit exposures to Marks and Spencer – This return on this security is linked to the Marks and Spencer Senior Unsecured Note, issued in GBP and paying 3.75%pa, maturing on 19 May 2026 (Marks and Spencer Bond). The performance of the Marks and Spencer Bond depends on Marks and Spencer meeting its obligations under the Marks and Spencer Bond. Therefore, investors have an exposure to the credit worthiness of Marks and Spencer.
- Value of the Units before the Maturity Date – The value of this bond-linked security before the Maturity Date will be determined by many factors, including the occurrence of an Early Maturity Event (eg Marks and Spencer exercises its right to redeem the Marks and Spencer Bond before the maturity date of the bond, if Marks and Spencer default under its obligations under the Marks and Spencer or if there is a negative impact on the rating of the Marks and Spencer Bond arises as the result of a ‘change of control’ of Marks and Spencer). In the case of an Early Maturity Event, the securities will be redeemed early and the foreign exchange hedge which has been put in place by the Issuer may not apply and investors may have exposure to the AUD/GBP exchange rate.
- Historical Performance – Historical performance of Marks and Spencer or the Issuer are not an indication of their future performance.
- Liquidity risk – If you want to sell your securities before the Maturity Date, there may be a delay, or you may not be able to do so, or may not be able to do so within your desired timeframe.
- Indirect Investment Risk – Compared to a direct investment (including bonds) in Marks and Spencer, the investor will not be entitled to receive dividend or other payments (if any) nor have any voting rights for corporate actions to do with Marks and Spencer.
- Custodian risk. The Custodian is a related party of the Issuer. There is a risk that the Custodian may be unable to perform its obligations under the Custody Deed and investors may not receive certain money when such amounts become due to them. However, the Custodian is a special purpose vehicle set up to act as Custodian for these types of securities and other structured products and has no other obligations.
Disclaimer: This webpage has been prepared by ABE Distribution Pty. Ltd ACN 673 177 912 (“ABE”). ABE is a Corporate Authorised Representative number 1307088 of Novus Capital Limited ACN 006 711 995 AFSL 238168. The information contained in it is of a general nature only. It was prepared without considering your financial needs, circumstances and objectives. Before investing in this security, you should consider whether it is appropriate for your circumstances and review the Master PDS and PDS. This website may contain links to other third-party websites, some of which require a subscription to read. Such links are for your convenience only, and ABE does not recommend or endorse these third-party sites. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. Past performance is not an indication of future performance. To the maximum extent permitted by law ABE disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything on this webpage.