Memery Crystal advises Hotel Chocolat on issue of "Chocolate Bonds"

Under the issue, which closed on 12 July 2010 and raised £3.7 million, eligible individuals could apply for up to £10,000 worth of Chocolate Bonds in multiples of either £2,000 or £4,000.  Investors in the £2,000 bond will receive six free Tasting Boxes per year, equivalent to a 5.38% return or 6.72% gross return for a basic rate taxpayer.  Investors in the £4,000 bond will receive thirteen Tasting Boxes per year, equivalent to a 5.83% return or 7.29% gross return for a basic rate taxpayer.

Hotel Chocolat is one of Britain’s fastest growing companies, with activities stretching from a 140-acre cocoa estate on Saint Lucia; manufacturing operations in the UK; a thriving Chocolate Tasting Club with over 100,000 members; over 40 retail stores in the UK; and recent store openings in Boston (USA) and the Middle East.  The Chocolate Bonds will fund Hotel Chocolat’s further investment in its cocoa estate, as well as the expansion of its manufacturing operations and opening of new stores in the UK and overseas.

The Memery Crystal team was led by corporate partner Lesley Gregory with corporate associate David Walker. The team has advised a number of other UK companies on the development of similar bonds, including the “Shaving Bonds” issued by The King of Shaves in 2009.

David Walker commented:  “We are delighted to have assisted Hotel Chocolat with the development and issue of its Chocolate Bonds, which will be an important tool in financing its exciting global expansion.”

Memery Crystal is a recognised leader for its corporate finance work, covering M&A, private equity and IPO/fundraising for UK and international companies.  The firm has been highly ranked for its excellence in handling M&A and IPO deals by both Chambers UK and The Legal 500, acting for public companies and off-shore funds, as well as for their nominated advisers and brokers.