Coffey launches $40 million bond offer
Coffey International Limited (ASX: COF) will undertake an unsecured corporate bond offering to raise $40 million. The bond offering will increase the tenure of Coffey’s debt maturity profile and diversify its debt funding sources. The net proceeds of the offering will be used to repay existing bank debt. The bond offering has the support of Coffey’s bank. When the bond offering is completed, bank facilities will be reduced by the net amount raised and extended for a further 18 months from February 2016 to September 2017. The Lead Arranger for the transaction is FIIG Securities Limited. The bond offering is only open to eligible professional and sophisticated investors. No prospectus or other disclosure documents in relation to the bond will be lodged with the Australian Securities and Investment Commission or any other regulatory authority. Managing Director John Douglas said the bond offering is in support of Coffey’s focus on debt reduction, which had seen gross debt fall to $77 million in June 2014. This compared to $88.7 million for the previous year and was down from a high of $150.8 million in FY2011. “Driving down debt was one of our key achievements in FY2014 and we are committed to building on this strength,” Mr Douglas said. “The bond issue will deliver a more balanced debt profile managed over a longer timeframe. It diversifies our funding sources and gives us greater certainty over the short to medium-term.” “Together with our recent return to profit, this gives us the right base on which to grow when opportunities emerge.” FIIG Securities CEO Mark Paton said the company was pleased to assist Coffey to diversify and lengthen the duration of its debt funding. “Coffey’s bond offering is another positive development for the expanding Australian bond market for midsized corporates,” Mr Paton said. For full terms and conditions of the offering please refer to the Information Memorandum to be lodged with the ASX once the terms have been finalised. This Information Memorandum is not a prospectus or other disclosure document for the purposes of the Corporations Act 2001 and, as noted above, the offering is only open to eligible professional and sophisticated investors.