A debenture is an unsecured debt backed by the credit worthiness of the borrower. Like a mortgage, it is a long-term debt that is paid back over time according to a fixed payment schedule. Unlike a mortgage, however, debenture payments are fixed for the entire loan period, and are not renegotiated every few years. Infrastructure Ontario offers flexible approaches to financing and provides borrowers with the option to use serial, amortizing or bullet loans over a variety of different terms.

Debentures close on the 1st and 15th of every month and the process generally takes 6-8 weeks assuming that all documentation is provided in a timely manner.

The Debenture Stock is secured by a charge to an independent Trustee Company, who holds a first ranking charge over the mortgages and other assets of Balanced Securities Limited including $1 million paid up capital and retained earnings of the company. Loans made by Balanced Securities Limited are on first mortgage only, and are advanced up to 67% of the value of a property.

Approximately 30 days prior to the maturity date of your investment we will advise you of the current interest rates applicable for new terms. If you wish to change the term or withdraw all or part of your investment at this time, you should advise us in writing at least 7 days prior to the maturity date. If you do nothing we will automatically roll over your debenture investment for the same term as previously held at the applicable interest rate.

WDH is the trading name for Debentures Ltd., a sole purpose company set up for the benefit of Wimbledon Debenture Ticket Holders. Our principal activity is the marketing and brokering the sale of Debenture Tickets on behalf of the Debenture Holders.

The rate of interest is based on the 10-year Treasury rate plus a market-driven spread, currently about 65-75 basis points.

Any participating borrower interested in long-term financing may contact Infrastructure Ontario to begin the debenture process. The borrower will then be provided with an offer letter that describes the detailed steps necessary to complete the debenture process. Please contact Wendy Citrigno at (416) 326-7812 or call Infrastructure Ontario toll free at 1-800-230-0937 to begin the debenture process.

Debenture Stock investments must be treated as a fixed term investment. Similar to first mortgage investments, Debenture Stock investments can be for a relatively short term and are generally for periods from one to three years.

Interest will commence from the date of acceptance of your investment eliminating the waiting period prior to a first mortgage investment becoming available. With first mortgage investments there was usually a "down time" between when a mortgage was repaid and funds were placed in an at call account pending re-investment in a new mortgage. This "down time" has now been eliminated for investors. There are no entry, account or collection fees and all interest rates quoted are the net return.

SBICs are eligible to use LMI Debentures, which are deferred interest debentures that are issued at a discount and require no interest payments or SBA annual charge for the first five years. LMI Debentures are available in 5 and 10 year maturities. The use of LMI Debentures is restricted to LMI qualified investments.