Consumer products firm McPherson’s is undertaking the issuance of a new set of unsecured corporate bonds aimed at SMSFs.
The bonds will be released to the market in two tranches, comprising a Series A issuance of four-year floating-rate bonds to mature in 2019 and raise $30 million, and a Series B issuance of six-year floating-rate bonds to mature in 2021 and raise a further $30 million.
The fixed-rate bonds will provide investors with a quarterly coupon rate of 7.05 per cent, while the floating-rate bonds will generate a yield of 4.3 per cent over the 90-day bank bill swap rate.
Fixed income specialist manager FIIG Securities will be distributing the bonds to its existing and new clients who satisfy the definition of being a professional or sophisticated investor with a minimum investment amount of $50,000.
“The bond offering announced today presents eligible and sophisticated investors with a unique opportunity to invest directly in the debt capital requirements of McPherson’s,” McPherson’s managing director Paul Maguire said.
“We are pleased with the terms of the offering given the various benefits derived for McPherson’s, including greater financial flexibility, extended tenure, diversification and a broadening of our capital base.”
Commenting on the issuance, FIIG Securities chief executive Mark Paton said the opportunity to assist McPherson’s in diversifying and lengthening the duration of its debt funding was pleasing. “This is our first multi-tranche bond issue with different tenors and also offering investors the option to invest in fixed and/or floating-rate bonds, in another positive development for the expanding Australian bond market for mid-sized corporates,” Paton said.
