Golfbreaks.com raises £2.8m through “innovative” golf bond scheme
Customers back oversubscribed deal in golf travel company in return for cash incentives and golfing holidays
Windsor-based golf travel company Golfbreaks.com has secured £2.8m via its three year golf bond scheme which offered customers the option of investing £2,000 to £100,000 for an annual cash return or annual golf holidays; a deal which was oversubscribed by £800,000.
Founded in 1998, Golfbreaks.com seeks to save golfers time and money by booking and managing their golf trips away and has grown to a customer base of over 500,000 golfers.
The golf platform, which has a turnover of £35m and employs 140 staff, will give bondholders a gross annual return of 7.5% in finance or a 10% gross annual return in loyalty ‘breakpoints’ to be spent on golf breaks or holidays on its site, or sister sites Teeoftimes.co.uk and BookaSpa.com, at venues and events such as the Ryder Cup or the Masters.
It intends to use the funding to drive expansion in America having already become one of the “market leaders” across the UK and Europe.
London law firm Memery Crystal advised on the development and issue of the ‘Golfbreaks Bond’.
Golfbreaks.com chief executive, Andrew Stanley, commented: “The response from our customers to the golfing bond has been truly remarkable and we are delighted that so many took the opportunity to invest in the future success of the company.
“With the bond being massively oversubscribed we’re now in a very strong position to accelerate our expansion plans. That means more investment in technology, growing our market-leading tee-time booking service and cracking the American market.
“Golf travel is worth billions globally so we know that the business is out there. Our job now is to go out and get it.”