Blue chip and Coronavirus Large Business Interruption Loan Scheme: Difference between pages

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imported>Doug Williamson
(Expand to clarify that the slots are not owned by the airline. Source: The Treasurer, February 2017, p25.)
 
imported>Doug Williamson
m (Reduce links.)
 
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1.
''COVID-19 - business continuity - UK.''


An equity share that is considered to be of the highest quality.
(CLBILS).


The CLBILS was designed to provide UK government guarantees of 80% to enable banks to make loans of up to £200m, offered to medium and large sized firms with a turnover of over £45m per annum that were impacted by COVID-19 and were unable to secure regular commercial financing.


2.


Any other investment considered to be of the highest credit quality.
To be eligible, a business must:


#Be UK-based in its business activity.
#Have an annual turnover over £45 million.
#Be unable to secure regular commercial financing.
#Have a borrowing proposal which the lender:


3.
::(a) would consider viable, were it not for the COVID-19 pandemic; and


Investors who invest mainly - or only - in blue chip investments.
::(b) believes will enable the borrower to trade out of any short-term to medium-term difficulty.




<span style="color:#4B0082">'''''Virgin's loan notes secured on Heathrow landing slots'''''</span>
For new borrowings from April 2021 onward, CLBILS is superseded by the Recovery Loan Scheme (RLS).


:"Virgin Atlantic Airways secured an impressive £220m senior secured note transaction using the airline's [rights to use] take-off and landing slots at London Heathrow Airport. It is the first time in European air travel history that airport slots have been leveraged in this way.


:Moody's provided a private rating for the senior notes, which lent further credibility and confidence to investors. The deal attracted interest from blue-chip investors as well as long-term pension funds."
==See also==
* [[Bounce Back Loan Scheme]]
*[[British Business Bank]]
*[[Business continuity plan]]
*[[Contingency plan]]
*[[Coronavirus]]
*[[Coronavirus Business Interruption Loan Scheme]]
*[[Coronavirus Job Retention Scheme]]
*[[COVID-19]]
*[[COVID-19 Corporate Financing Facility]]
*[[Disaster recovery planning]]
*[[Financial stability]]
*[[Liquidity management]]
*[[Stranded middle]]




:''The Treasurer magazine, February 2017 p25 - Deals of the Year - Bonds below £500m winner.''


==Resources for COVID-19==
[https://www.treasurers.org/hub/technical/covid19 ACT technical - COVID-19]


== See also ==
[https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses UK government: support for businesses]
* [[Bond]]
 
* [[Equity]]
[https://www.gov.uk/coronavirus UK government: COVID-19 support hub]
* [[Leverage]]
 
* [[Moody's]]
[[Category:Accounting,_tax_and_regulation]]
* [[Note]]
[[Category:The_business_context]]
* [[Private rating]]
[[Category:Corporate_finance]]
* [[Security]]
[[Category:Investment]]
* [[Senior]]
[[Category:Long_term_funding]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 10:47, 11 March 2021

COVID-19 - business continuity - UK.

(CLBILS).

The CLBILS was designed to provide UK government guarantees of 80% to enable banks to make loans of up to £200m, offered to medium and large sized firms with a turnover of over £45m per annum that were impacted by COVID-19 and were unable to secure regular commercial financing.


To be eligible, a business must:

  1. Be UK-based in its business activity.
  2. Have an annual turnover over £45 million.
  3. Be unable to secure regular commercial financing.
  4. Have a borrowing proposal which the lender:
(a) would consider viable, were it not for the COVID-19 pandemic; and
(b) believes will enable the borrower to trade out of any short-term to medium-term difficulty.


For new borrowings from April 2021 onward, CLBILS is superseded by the Recovery Loan Scheme (RLS).


See also


Resources for COVID-19

ACT technical - COVID-19

UK government: support for businesses

UK government: COVID-19 support hub