If you’re applying for a corporate bond, or are issuing one, and are worried about the potential legal fees involved, look no further than Legal Cost Finance. Our comprehensive range of innovative payment solutions provide a solid legal loan for you to build upon, allowing you to focus on securing the best option for your company. We understand that issuing and applying for bonds can be a complex and technical process, so why should you have to worry about the legal fees as well? At Legal Cost Finance, we believe in helping people like you reduce the burden of legal fees. Start with one of our payment plans today, or for more information, contact our team of legal finance experts on 020 3376 1888.
How can LCF help with investors and bond issuance?
Legal Cost Finance’s legal loans come with payment plans that are tailored to a broad spectrum of personal situations. Take our LawPlan Prime option for example; it is a form of legal cost finance geared towards businesses and private individuals who’d rather avoid paying large amounts from their own pockets. We know that most lawyers will request clients pay in advance or on account before providing services. We also know that most clients (likely including yourself) are generally unwilling to part with large sums of money before any work is done, especially if they haven’t worked with the lawyer before. This is why LawPlan Prime could be the perfect solution for you; with it you can get a legal loan and access to the proper representation you require, without the risk of significant personal cost.
Like our other payment solutions, LawPlan Prime allows you to repay your legal loan in manageable increments. This convenient repayment structure is designed to alleviate your financial worries, giving you and your business the breathing room to focus on the things that matter. Choose a payment plan from Legal Cost Finance and rest safe in the knowledge that your lawyer’s fees will be paid on time and in full.
Whether you’re issuing a bond or a looking to invest, we firmly believe that our legal loans will help you approach the process with confidence. In having one of our legal loans to back you up, you no longer need to worry about the escalating costs. If required, Legal Cost Finance is happy to liaise with your investment banker on your behalf, as well as offer you cost-effective solutions to help cut your legal fees. If you only need a legal loan, then give us a call and we’ll guide you through the process step by step.
What are corporate bonds?
Corporate bonds are a form of debt security issued by corporations and sold off to investors. These bonds are usually backed by the payment ability of the company issuing them, which, generally speaking, is money expected to be earned from future operations. Occasionally, the physical assets of the company involved may be used as a bond collateral.
Traditionally, companies would apply for a bank loan to fund their business, but more and more are turning towards corporate loans. This is because corporate loans typically offer lower risks and higher incomes, making them a popular option for businesses wishing to avoid the ‘middle men’ at the banks.
How are bonds issued?
When a company decides they need extra funding, they’ll begin the process of issuing bonds. This bond acts as a loan between the corporation and the investors providing it, who then receive periodic interest payments from the corporation. Usually, a financial institution (lead manager) arranges the transaction, which includes bonds, legal documentation and settlement procedures. These lead managers forward a draft to the invitation telex, containing the proposed terms of the bond issue to their appointed lawyers so they can start to prepare the main legal documents. These include:
- Subscription agreement
- Agreement among lead managers
- Fiscal agency agreement and deed of covenant or a trust deed and paying agency agreement
- Legal opinion
- Signing and closing memorandum.
Once the lawyers have carried out due diligence on the issue, and given their legal opinion, the issuer will announce their intention to issue bonds and arrange a launch date. Usually between 1-3 weeks after the launch, the legal documents are signed by the relevant parties and the issuer delivers the bonds. A subscription agreement is then signed and the bonds are delivered to the bondholders. At this stage payment is transferred to the issuer.
Get detailed information from our legal cost finance experts on 020 3376 1888.
Spread your legal expenses conveniently over time to minimise impact on your business
We provide payment plans to cover your legal costs, so you or your business can get the legal support you require – without the need for large up front payments.
We will connect you with a lawyer who specialises in company law matters and who is right for your individual circumstances. If you have already appointed a lawyer, we can still offer you a payment plan solution and will make all the necessary arrangements with your lawyer on your behalf.
How can we help?
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