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SEC Qualifies Legion Capital’s Reg A+ Bond and Preferred Stock Offering

Legion Capital Corporation, a boutique private equity firm and specialized business lender headquartered in Orlando, has been qualified by the Securities and Exchange Commission to offer both bonds and preferred stock shares.

Legion Capital Corporation, a boutique private equity firm and specialized business lender headquartered in Orlando, has been qualified by the Securities and Exchange Commission to offer both bonds and preferred stock shares. The Regulation A+ offering is comprised of $40 million of Series A corporate bonds and Series A redeemable preferred membership units.

The offering is backed by senior secured mortgages on residential and commercial development properties and is available to both accredited and non-accredited investors – including qualified money. Legion Capital has partnered with managing broker-dealer Sequence Financial Specialists LLC to distribute the offering.

“Our newest offering will allow us continue to grow our commercial lending footprint in the real estate acquisition and development space,” said Jim Byrd, chief executive officer of Legion Capital. “We are excited to be working with the team at Sequence Financial Specialists to bring this offering to the broker-dealer and RIA community. Our bond and preferred stock offerings have the ability to provide current income without exposure to equity markets volatility, which we believe is an important factor in the current economic environment.”

The bonds are being offered with one, two, and three-year maturities and pay monthly coupons of 4.5 percent, 5.75 percent, and 6.5 percent per year, respectively. The bonds are priced at $1,000 each, have a minimum purchase of $10,000, and include an automatic renewal feature.

According to a recent SEC filing, one-year bonds will include a 1.5 percent sales commission and a 0.50 percent managing broker-dealer fee. Two-year bonds will include a 4.0 percent sales commission and a 0.75 percent managing broker-dealer fee. Three-year bonds will include a 5.25 percent sales commission and a 1.0 percent managing broker-dealer fee.

The Reg A+ Tier II preferred stock shares have a 7.5 percent annual dividend rate, paid monthly, and have an annual profit participation payment to shareholders. The shares have a redeemable feature and a declining redemption fee schedule that goes from 12 percent in year-one to zero percent after the fourth year.

The shares are priced at $1,000 each and include a 7.0 percent sales commission and 1.25 percent broker-dealer fee. The minimum investment is $10,000.

The bonds and shares each include a 1.0 percent soliciting dealer fee, 0.50 percent non-accountable expense reimbursement, and 0.50 percent accountable expense allowance.

As a specialized lender, Legion Capital claims to fill a void created by banks and institutional lenders that no longer serve early stage real estate projects. The firm also supports its lending activities with title and closing, marketing, and management services through wholly owned subsidiaries.

Established by the SEC in 2015 under the JOBS Act, Regulation A+ Tier II offerings allow companies to sell up to $50 million in securities within a 12-month period. In addition, it requires regular financial filings and annual audited financial statements.

Legion Capital Corporation provides financing for small- and medium-sized businesses and real estate developers.

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