Alpha Plus Holdings Plc 5% 31/03/24

Please find complementary research on the Alpha Plus Holding Plc 5% 31/03/24 bond, which is currently in the ‘Offer Period’ before being listed on the London Stock Exchange.

Alpha Plus Holdings Plc (“Alpha”) and its subsidiaries operate 12 independent schools, 14 nurseries and 4 sixth form colleges. The majority of the schools and nurseries are located in Central London (Notting Hill, Marylebone and Hampstead in particular).

The bond does not carry a credit rating but is secured 1.66 times by a first legal mortgage over a portfolio of high quality properties being operated by Alpha as schools. These were recently valued at £108,820,000 and are predominantly located in Pembridge Square, one of the most prestigious addresses in central London.

The bonds have a minimum investment of just £2,000 with multiples of £100 thereafter.

The Offer Period ends on 23rd March but is likely to close early due to demand. The previous Alpha bond rose immediately above par and are now yielding  just 3.7%. That bodes well for investors and we rate the issue a strong buy.